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CentralNic Group plc

CentralNic Group plc Successful debut bond issue & positive trading update

CentralNic Group PLC (LON: CNIC), the internet platform that derives revenue from the worldwide sales of internet domain names, has today announced the successful placement of senior secured debt and strong trading for the first four months of the financial year.

Successful placement of debut €50m senior secured bond issue

On 23 May 2019, CentralNic announced that it had mandated Pareto Securities to arrange a series of fixed income investor meetings to potentially issue a 4-year senior secured non-convertible bond of approximately €50m.

The Company has now successfully completed a new senior secured bond issue of €50m (c.$56.8m USD as of 21 June 2019) which was oversubscribed. The bond which matures in July 2023, has a coupon of three-month EURIBOR* plus 7% p.a. with quarterly interest payments. Pareto Securities acted as Sole Bookrunner for the bond issue. CentralNic was advised by Rothschild & Co in connection with the bond issue..

· *With a floor at zero per cent

The settlement date for the bond issue is expected to be in early July 2019. Following settlement, the Company will use these funds to repay existing interest-bearing liabilities and to fund the acquisition of the Sydney-based business TPP Wholesale, the leading platform for resellers of domain names and hosting in Australasia, for a headline consideration of $24m AUD (c.$16.6m USD as of 21 June 2019). TPP Wholesale’s revenues and EBITDA for the financial year ended 31 December 2018 were $17.0m AUD (c.$12.7m USD) and $3.9m AUD (c.$2.9m USD), respectively, on an unaudited basis.

An application will be made for the bonds to be listed on the Oslo stock exchange.

Trading Update

Trading for the first four months of 2019 has been strong and management therefore expect full year results to be ahead of market consensus. For the four month period ending 30 April 2019 CentralNic had recorded revenues of c.$33.8m USD (c.$9.0m USD for the same period in 2018) and EBITDA of c.$5.4m USD (c.$0.4m for the same period in 2018). Net debt, excluding prepaid charges, stood at c.$7.4m USD as of 30 April 2019. The Company has changed its reporting currency to US dollars for 2019, as announced on 26 September 2018.

Ben Crawford, CentralNic Group CEO commented:

“We are delighted to have completed our debut bond issue, which was oversubscribed and supported by a wide range of debt capital markets investors globally. This establishes CentralNic as an issuer and, in combination with our strong support among equity market investors, offers us considerable financial flexibility, over the medium term, to pursue our strategic growth objectives.

“Meanwhile, the pleasing organic growth of our existing recurring business continues to provide a solid basis to include this increased leverage into our financial structure – allowing us to continue making earnings accretive acquisitions while maintaining prudent debt ratios.”