(Alliance News) - Events services provider Arena Events Group PLC said Monday it has been awarded several new contracts across the US, UK, and Middle East & Africa.
All projects are due to be delivered in the first half of 2020, and will require upfront investment in working capital and equipment.
As a result, Arena Events have agreed with major shareholder Lombard Odier Investment Management for a short-term financing facility of GBP2.0 million.
The amount will be available for drawdown and is repayable six months from inception, with a 2% arrangement fee and an additional 5% premium on the drawn funds.
The new facility is subordinated to Arena Events's existing facilities with HSBC UK PLC.
"Our business is, at times, capital intensive and the need for additional finance reflects the group's positive performance in winning new contracts which together with the, already secured, multi-million pound contracts for the US Ryder Cup and the Seating and Structures contracts for Tokyo Olympics, sets the group up for a strong 2020," said Chair Ken Hanna.
Shares in Arena Events - which is headquartered in London - were down 1.8% at 19.15 pence on Monday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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