International Workplace Group (IWG) Trading Update summary

Financing and capital structure update

• Completed debut €575m 6.5% investment grade bond due June 2030, with €400m swapped to $427.7m at 8.153% coupon, and a weighted average coupon of 7.65%.

• Secured a new $720m revolving credit facility (RCF) maturing June 2029, replacing the previous $1,107m RCF.

• Reduced outstanding convertible bond from £350m to £231.7m, facilitating eventual repayment by December 2027.

• Proceeds from the bond and RCF will repay the convertible bond and reduce RCF drawings; £118.3m of convertible bonds repurchased for £109.0m.

• Total debt remains unchanged post-transactions, with a confirmed BBB (Stable) investment grade rating from Fitch.

Operational and reporting developments

• Transitioned financial reporting to USD effective 1 January 2024, using a GBP:USD rate of 1:1.25 for adjustments.

• Restarted dividend payments with a progressive policy.

• Changed company name to International Workplace Group plc.

• Now reports in three divisions: Company Owned & Leased, Managed & Franchised, and Worka.

Outlook and financial expectations

• Maintains 2024 financial expectations and outlook as previously communicated on 7 May 2024.

• Net financial debt at 31 March 2024 was $791m.

• Committed to maintaining investment grade rating with a target pre-IFRS net debt/adjusted EBITDA ratio of 1.0x.

• Interim 2024 results to be announced on 6 August 2024; Q3 trading update scheduled for 5 November 2024.