Literacy Capital PLC has refinanced and extended its revolving credit facility, securing additional capital and flexibility. The London-based investment company, which donates 0.9% of its net assets annually to UK literacy charities, replaced its existing GBP30 million facility with Investec Bank PLC, set to expire in December, with a new facility from OakNorth Bank PLC.

The new facility has a three-year term, expiring in September 2027, and includes GBP30 million in committed funding, with an additional GBP10 million available. The cost of the new facility is lower, offering greater flexibility for new investments, while maintaining the loan-to-value financial covenant at 20%.

CEO Richard Pindar expressed satisfaction with the new debt facility, highlighting its support for Literacy Capital's investment activities and its role in delivering strong net asset value performance and shareholder returns. He noted that the competitive proposals received from lenders reflect the maturity and growth of Literacy Capital since the original facility was established in 2021.

Pindar also emphasized the company's ongoing evaluation of high-quality founder-led businesses in the UK and the continuous assessment of refinancing or selling portfolio companies to generate cash for new investments.

Shares in Literacy Capital were down 0.4% at 502.40 pence in London on Monday morning.