Molten Ventures plc (LON: GROW), a leading venture capital firm investing in and developing high growth digital technology businesses, has announced that it has agreed a new £150m net asset value (“NAV”) facility with J.P. Morgan Chase Bank, N.A. and Silicon Valley Bank. The Debt Facility comprises a £90m term loan and a revolving credit facility (“RCF”) of up to £60m on three-and two-year tenors respectively, both with one-year extensions up to five years, and is secured against various assets and LP interests in the Group. The Debt Facility’s interest rate is SONIA plus a margin of 5.5% per annum.
The Debt Facility is underpinned by the value of the investment portfolio and the drawdown is subject to a maximum loan to value ratio of 10%. The value of the portfolio companies is subject to periodic independent third party valuation, the first of which has been conducted for the outset of the facility with valuations as at end June 2022. The Debt Facility will be utilised for investment and corporate purposes and repays in full the Company’s existing £65m facility with SVB and Investec.
Martin Davis, Chief Executive Officer of Molten Ventures, commented:
“We had signalled the expansion of the debt facility in the full year results and are pleased to enter this new relationship with JPM alongside the continued support of SVB to secure further investment capital for the Company. The Debt Facility has been scaled to realign our capital structure with our previously stated target of 10% of portfolio value and provides increased funding flexibility.”
Molten Ventures (LON: GROW) is one of the most active venture capital firms in Europe, developing and investing in disruptive, high growth technology companies. We believe it is our role to support the visionary entrepreneurs who will invent the future. We fuel their growth with our “energy” in the form of long-term capital, access to international networks and decades of experience building businesses.