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(Alliance News) - Sparkling wine maker Gusbourne PLC on Monday said its subsidiary Gusbourne Estate Ltd has agreed with Franove Holdings Ltd to receive an unsecured short-term loan facility of GBP1.3 million.
Franove is owned by Paul Bentham, a non-executive director of Gusbourne.
The loan - which will be used to provide working capital for Gusbourne - is repayable on December 10 next year. Interest is payable on repayment of the debt at 15% per annum.
The Ashford, Kent-based wine producer explained that it intends to refinance the loan from Bentham with a new loan secured by a debenture and a legal charge from Gusbourne Estate and guaranteed by Gusbourne.
The repayment term of this loan will be the same as for the director's loan, but interest will be payable on repayment of the debt at 10.5% per annum, unless the debt is repaid within three months, in which case it will be 15% per annum, or repaid between three to six months, in which case it will be 12.5% per annum.
Looking ahead, Gusbourne said it will seek an additional longer-term funding from investors and debt providers to fund its ongoing operations and asset base.
The AIM stock was trading 0.6% lower in London on Monday afternoon at 76.04 pence a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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