FAMOUS BRANDS LIMITED - Further voluntary update

Further voluntary update

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands” or “the Group” or “the Company”)

Further voluntary update

Covid-19

Shareholders are referred to the voluntary update (“update”) published
on SENS on Monday, 23 March 2020, in which we stated that across all
our trading jurisdictions, the Board of Directors (“the Board”) and
management fully endorse the various governments’ decisive actions to
contain the spread and impact of the coronavirus pandemic. We noted
that we remained committed to managing business continuity and
providing an uninterrupted service to our customers while safeguarding
our people and ensuring the well-being of the communities we trade
in.

It was also noted in the update that a deterioration in store sales
had commenced on Sunday, 1 March 2020 in the UK and subsequently
extended to other Group markets, including the United Arab Emirates,
South Africa (“SA”), Mauritius and Kenya.

Following the release of the update, the situation continues to evolve
and the Board wishes to apprise shareholders as follows:

SA

A national lockdown has been implemented for a 21-day period with
effect from midnight on Thursday, 26 March until midnight on Thursday,
16 April 2020. The Group is in full compliance with the regulations
of the lockdown and as a result all of our restaurants have ceased to
trade. Additionally, all but one of our manufacturing plants, Lamberts
Bay Foods (“LBF”), have shut down. LBF currently remains in production
as it supplies an essential product (value-added potato products) to
retailers who continue to trade. We also continue to supply a small
range of branded items classified as essential products to retail
customers.

Rest of Africa, Middle East and Europe (“AME”)

Group restaurants and operations in the region have closed in
compliance with Government directives as follows:
Nigeria: with effect from Monday, 30 March 2020 for a period of 14
days.

   Botswana: with effect from Thursday, 2 April 2020 for a period of 28
   days.

   Management expects similar restrictions and/or lockdown measures will
   be implemented in other trading jurisdictions in the region in due
   course.

   United Kingdom (“UK”) and Ireland

   GBK Restaurants Limited (“GBK”) and Wimpy UK

   As outlined in the update, the respective Governments of the UK and
   Republic of Ireland have ordered restaurants in those countries to
   close indefinitely until further notice. Accordingly, the GBK UK
   operation has ceased to trade. At this point, our Wimpy UK business
   continues to supply limited services to home delivery providers.

   Shareholders are referred to the cautionary announcement published on
   SENS on Thursday, 2 April 2020 regarding the GBK UK business, in which
   it was advised that the Board of Famous Brands had reviewed its
   investment in GBK and decided to not provide any further financial
   assistance to the business. A further announcement in this regard will
   be issued in due course.

   At present and for the duration of the various lockdowns across our
   trading markets in SA, AME, UK and Ireland, the Group will not be
   generating material revenue.

   Refinanced debt structure

   The Board is pleased to advise shareholders that management’s
   negotiations with the Group’s primary lender regarding a more
   appropriate debt finance structure were successfully concluded on
   Friday, 13 March 2020.

   Details of the restructured debt finance are set out below. The debt
   covenants were concluded at the same level as the previous debt
   structure.

                                            Interest rate
New Loans       Currency Maturity   Nature    Margin Rate          Facility
Loan facility                                 %                    (Rm)
A: Amortising   ZAR      February   Variable 1.50    3       month 150 000 000
loan                     2021                        JIBAR
B: Amortising   ZAR      February   Variable 1.60    3       month 150 000 000
loan                     2022                        JIBAR
C: Amortising   ZAR      February   Variable 1.70    3       month 150 000 000
loan                     2023                        JIBAR
D: Amortising   ZAR      February   Variable 1.80    3       month 400 000 000
loan                     2024                        JIBAR
E: Revolving   ZAR      February   Variable 1.90   3     month 760 000 000
credit                  2024                       JIBAR
facility

   The Group’s debt covenants are actively monitored internally on an
   ongoing basis. The debt covenants on the refinanced structure and
   other measures will be measured for reporting purposes at the end of
   August 2020, aligned with the Group’s half-year reporting period.

   The Group’s results for year ended 29 February 2020 will be released
   on or about 26 May 2020.

   The financial information on which this voluntary update is based has
   not been reviewed or reported on by the Group’s external auditors.


   Midrand
   3 April 2020

   Sponsor
   The Standard Bank of South Africa Limited

Date: 03-04-2020 09:00:00
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