LONDON (Alliance News) - eServGlobal Ltd on Thursday said it has now fully drawn down the GBP5.0 million available through a loan facility signed with two funds associated with Henderson Global Investors in October 2015.
The full drawdown of the facility means the mobile payments company owes GBP10.0 million to Henderson, thanks to a previous borrowing in June the same year.
The drawdown comes after shareholders vote to give eServGlobal the power to put up its assets as collateral for the loan facility and the previous borrowings. The funds secured from Henderson will go towards working capital and repaying a AUD3.0 million loan due to National Australia Bank. The company expects the bank to require repayment of the loan at the end of the current term, being March 31.
"There has been no variation to the terms of the loan facility or any other arrangement between the company and the lenders and there has been no new agreement between the company and the lenders incidental to the drawdown of the second advance," eServGlobal said.
"The National Australia Bank has not provided its consent to security being granted to the lenders and accordingly the lenders are currently, and will remain, unsecured creditors of the company until the National Australia Bank provides its consent, which the directors do not expect it to do, or the current loan from the National Australia Bank is discharged," eServGlobal said.
Shares in eServGlobal were down 8.9% at 2.05 pence on Thursday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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