Digital learning and talent management specialist Learning Technologies Group updated the market on its exposure to the collapse of Silicon Valley Bank and its UK subsidiary on Monday.
The AIM-traded firm said the failure of the bank would not have a material effect on its financial position.
It reaffirmed that it had a “robust” balance sheet and “strong” liquidity.
As at 10 March, Learning Technologies had total cash and cash equivalents of £110.7m, of which approximately £11.7m was on deposit with SVB and SVB UK.
Of that £11.7m, £9.4m was with SVB and £2.3m with SVB UK.
Learning Technologies said its requested withdrawal of its deposits on Friday, and had received £0.3m to date.
The board noted the 12 March statement from the US Treasury, Federal Reserve and FDIC, adding that it would continue to pursue any unreturned deposits, including if necessary through the relevant receivership process.
“The company has a strong and diversified banking syndicate made up of Barclays, HSBC, Bank of Ireland, Fifth Third Bank and SVB, which also acted as facility agent for the lenders,” the board said in its statement.
It added that the facilities comprised a drawn amortising term loan of $255.4m, of which SVB provided $53.7m, and an undrawn revolving credit facility of $50m, of which SVB provided $10.5m.
“SVB’s portion of the term loan will continue to be outstanding until it is due to be repaid or SVB is replaced.
“LTG believes it is unlikely that SVB will fund its share of any future drawings on the revolving credit facility, although the remaining $39.5m will continue to be available as normal.”
At 0952 GMT, shares in Learning Technologies Group were down 4.31% at 131p.
Reporting by Josh White for Sharecast.com.
