Videndum unveils refinancing plan but stock price tumbles
Videndum PLC on Tuesday announced the final terms of its ‘comprehensive’ refinancing plan, which includes ‘a significant equity raise’ through a placing and open offer.
‘Following completion of the refinancing, the company will have significantly deleveraged its capital structure and materially improved its key credit metrics and believes it will be well positioned to deliver on its business potential,’ Videndum stated.
The Richmond, London-based broadcasting hardware and software provider highlighted that the refinancing includes an underwritten gross £85 million fundraise, with net proceeds of around £78.9 million, 96% of which would come from a placing with the other 4% from a placing and open offer.
The firm said the 270 pence per share offer price is equivalent to a pre-consolidation issue price of 1.35p.
Videndum shares plummeted 56% to 4.29p early on Tuesday afternoon in London.
The fundraise, which was upsized from £70 million ‘following signficant demand from institutional investors,’ will go towards Videndum’s goal of slashing net debt by £111.7 million to £31.2 million.
Videndum also said £23 million of existing revolving credit facility debt will by equitised by Polus Capital, with lenders writing off and releasing £15.8 million of existing RCF debt.
Additionally, around £60 million in ongoing debt facilities are planned, with Polus Capital as the main lender.
Videndum said the net equity proceeds will go towards paying down £50 million of the existing RCF and pay £6 million in fees.
‘The new debt facilities and remaining net proceeds will increase the group’s ongoing liquidity and headroom,’ the company said, forecasting that the equity raise and equitisation will complete on March 30.
Looking ahead, Videndum said it anticipates good revenue growth, supported by the introduction of new products, in 2026, and that its expectations for the year remain unchanged.
Videndum added that in the medium term, it expects revenue in excess of £350 million and is targeting a mid-teen earnings before interest, tax, depreciation and amortisation margin.
‘The board believes the refinancing is in the best interests of shareholders taken as a whole and other stakeholders,’ commented Chair Stephen Harris. ‘Our markets have been tough but we believe the prospects are there. We’ve focused the group’s operations, enacted significant self-help actions and have clear strategic levers to improve performance.
‘Videndum is embedded at the heart of content creation, with mission critical products that attach to and support camera systems across professional workflows.’
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