LONDON (Alliance News) - GLI Finance Ltd Wednesday said it has agreed a loan facility to borrow up to GBP30.0 million from Sancus Ltd, a peer-to-peer lender in which it holds a 7.4% stake, as it looks to build its portfolio of loan assets.
The company can initially borrow up to GBP10.0 million under the facility, with the potential for up to a further GBP20.0 million to be made available at a later date. Interest on the facility, which is secured over the company's assets, will be charged at 11% a year. The facility falls due for repayment on March 15, 2015.
In a statement, GLI said the facility also will support the further growth and development of the peer-to-peer lending platforms in which GLI Finance already holds equity interests. It reiterated that it is working on a number of deals to acquire equity holdings in additional platforms, and said the facility will provide an additional source of funding for their completion.
GLI Finance Chief Executive Geoffrey Miller is also a director of Sancus.
The "aggregate interests of Sancus' directors in its issued share capital exceed 30%. As such, Sancus is a related party of the company under the AIM rules. The other directors of GLI Finance (all of whom are independent of Sancus) consider, having consulted with Panmure Gordon as the company's nominated adviser, that the terms of the facility are fair and reasonable insofar as the company's shareholders are concerned," GLI said.
GLI shares were Wednesday quoted down 1.1% at 56.40 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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