RM plc Announces Extension and Amendment of Banking Facility

RM plc, a leading provider of educational technology and digital learning solutions, revealed on 6 March 2024 that it has successfully negotiated with its lenders for an extension of its current financial facility until July 2026. The company, known for its significant contributions to global education through technology, had previously initiated discussions in the second half of 2023 to extend its £70m facility and revise covenant test requirements.

These negotiations have concluded with an agreement that not only extends the facility but also resets and extends the terms of the quarterly minimum last twelve months (LTM) EBITDA covenant tests to November 2025. From February 2026 onward, these tests will switch to a quarterly LTM EBITDA leverage test and interest cover, both set with a threshold below four times. Additionally, the hard liquidity covenant has been reduced to £5m for specific periods in 2024 and 2025, with all other charges and covenants remaining largely unchanged.

Mark Cook, Chief Executive of RM, expressed gratitude towards the lenders for their continued support and the positive adjustments to the financial agreement. He highlighted the long-term supportive relationships with the lenders and RM's commitment to simplifying the business, reducing net debt, and reigniting growth and profitability.