Gusbourne Plc announced that it has completed a refinancing of its debt arrangements which were held with PNC Financial Services UK Ltd. (PNC) and a company associated with Lord Ashcroft through the issue of a new £20 million long-term secured deep discount bond (the "Refinancing"), providing additional funding for future growth. Background to the Refinancing: On 15 August 2022, the Company announced that it had increased its existing £10.5 million 5-year asset-based lending facilities by an additional £6 million to provide the Company with a total £16.5 million asset-based lending facilities with PNC (PNC Facility) structured as a revolving loan facility. The PNC Facility carried interest at the annual rate of 2.50% over the Bank of England Base Rate (the latest interest rate being 7.75%) and was payable monthly, with security by way of first priority charges over the Company's inventory, receivables and freehold property as well as an all-assets debenture, and contained financial and general covenants and customary events of default.

On 14 November 2023, the Company announced that it had agreed a short-term unsecured loan facility of £1.5 million with a company associated with Lord Ashcroft ("Loan"). The Loan carried interest at the annual rate of 2.50% over the Bank of England Base Rate and was repayable on demand. The Refinancing: The Company has now entered into an agreement with a company associated with Lord Ashcroft (Moongate Holdings Group Limited) for the issue of a new £20 million long-term secured deep discount bond ("DDB") to support the Company's working capital and ongoing growth.

The subscription price of the DDB is £20 million. The subscription proceeds of £20 million have been used to repay the existing PNC Facility amounting to £16.3 million, repay the short-term unsecured Loan of £1.5 million, related fees and expenses of £0.6 million and the remaining proceeds will be used for working capital and to support the ongoing growth strategy of the Company. Key terms of the DDB: Issued at a discount of 7.75% per annum on quarterly rests; Nominal amount is £26.3 million which is payable on the final redemption date of 12 August 2027, which end date is consistent with the PNC Facility; Early redemption of the DDB with not less than 90 days' notice (with early repayment fees); Accrued discount is payable on the early or final redemption of the DDB - allowing increased cash flow for the Company versus monthly interest repayments; Security over land, properties and stock, full fixed and floating security over the assets of both the Company and Gusbourne Estate Limited; Other key terms and conditions of the DDB are consistent with the PNC Facility.