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Very easy to pelt stones.
Try getting a bank to offer you a loan when your revenues kicked off only in December. Good luck with that.
The assets might be valued at anything in-situ, for a lender what matters is ex-situ. That's a completely different ballgame.
Let's get real and put things in perspective.
When your only option is to turn to the leg-breakers for money, you really have run out of road.
I agree
This is a horrific deal.
Even at £6m asset value the LTV is less than 50% and this is priced at 13%+ coupon and a 4% exit fee???? The lender is getting a fully secured equity return for lending less than 50% LTV and Infa have pledged everything they just spent £6m in cash buying for £2m.
Why on earth did they not get a bank loan at sub 5%
This is a desperation deal. Alarm bells for me.
This is insane. A loan secured on assets worth many times the principal still carries 13.2% interest rate? For goodness sake, a car loan secured on a fast-depreciating vehicle can be had for under 4% p.a.. Unsecured junk bonds are 8%. It clearly shows the lender doesn't have confidence they'd get anywhere near £2mil for H&W assets AND that they also price INFA for bankruptcy.
Loan of £2m, charge on assets worth atleast £6m (someone mentioned £12m at one point), surely the lender has done great work - JW and team fail they get a £6m/£12m asset for £2m.
As someone said, need some news on what's coming in, not what's going out now
To be fair to JW has been doing quite a lot since he started and it does take a different skill set communicating, and maybe this is a skill he is not quite so good at?
Snap! ;)
What we could do with is someone on the board with years of experience in the public relations industry...
... oh, wait!
Come on Deb's, chuck out something to give us a boost.
Let's hope the new non-exec can teach the BOD on communication and fast!
Hereshopin, Maybe because of every announcement being about survival and nothing on prosperity.
There seems to be quite a few bailing the last few sessions, An RNS stating something coming in rather than going out may help, how is the market suppose to estimate the value of INFA if they only announce outgoings?
IMO the deal is as good as we could have got, covers most short term needs and shows confidence.
Regarding "announce every single contract" INFA do not need to announce every contract but given where we are they could state that "current work is covering costs @ H&W" that would help PI's (if indeed so).
Droderick
My thoughts as well, on the face of it the credit facility is a good deal and if contracts and work does start to ramp up then the repayments are easily achievable. Also gives the business time to gear up and even reaching a modest capacity will be more than enough to cover the loan.
Now what we need is the bloody 1.6 mill from the EU although I know that half is already accounted for to Costain. Still be nice to actually receive the funds.
Mr T
The new debt deal is a good one. Given the size of the company, the interest rate is good. The fact that they managed to get a 2 year runway for a bullet payment of the principal at the end year 2 shows that the lender has confidence in the business and is happy to take a 2 year credit risk on Harland.
Riverfort refinancing without any convertibles is superb. It takes the immediate cash pressure off and staggers payment over 10 instalments - yet again a good deal and vindication of lender's confidence in the overall credit risk of the group.
As far as contracts are concerned, I think it is prudent to announce what's happened at the time of the interims. I don't see why JW should be announcing every single contract and exposing the company's strategy and contracts to competitors. There are some things best left inside his kimono!
MY eyes are very bad thanks
DRODERICK you are correct thank you so much
83000 a month payments not intrest
50000 a month OVER TEN MONTHS to riverfort as well gets better- 110000 NOW
You might want to check your maths.
It's 13.20% per annum that's 1.1% per month which equates to £22,000 per month.
Principal repayment is at the end of year 2 with a 4% exit.
IM VERY serious how are they going to cover all these commitments . We need contract work for hand w urgent otherwise i can see problems
83000 pound a month payments regular plus 4 per cent exit fee
IF WE ARE paying these rates i wonder what the intrest rates we were offered for fid .. ..
VERY HIGH not impressed
Infrastrata PLC - New Asset Backed Debt Facility #INFA @InfraStrata_Plc ****************************/rns/announcement/a37e1c7f-a9bb-4b46-a4c1-749f5c6f45c8 #**********