A listed legal services group has said an extended credit facility announced today will give the company ‘time and stability’ to refocus.

RBG Holdings, which owns the law firms Rosenblatt and Memery Crystal, has agreed a renewed facility with its current provider HSBC for £24.5m. The facility runs until 31 December 2025 and consists of an £18m revolving bank facility and £6.5m term loan.

The renewed facility replaces the £21.5m of facilities which were due for renewal in April 2024.

The interest rate on the renewed facility will remain the same as for the previous facilities, paying a margin of between 2.4% and 3.15% over the Sterling Overnight Index Average (SONIA), resulting in a current effective rate of 8.3%.

RBG said it has already taken action to achieve its stated aim of reducing the group’s debt, including suspending dividends and parting company with its third-party litigation finance business LionFish.

Kevin McNair, chief financial officer of RBG Holdings, said: ‘Our new facility gives the group and its stakeholders the time and stability needed as we refocus the group under its new management team. After a comprehensive process, we are delighted to be continuing our long-standing relationship with HSBC who are supportive of our plans.’

McNair, previously the finance director and chief financial officer of listed businesses including Ebiquity plc and GYB plc, was appointed chief financial officer last month. He replaced Suzanne Drakeford-Lewis, who resigned in June to take a six-month sabbatical for personal reasons. She later confirmed to the board her decision not to return in 2024.

Shares in RBG Holdings rose by 8.2% to 16.5p on the announcement of the extended facility. Over the past year they have slumped from a 2023 high of 71p in January.

 

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