LONDON (Alliance News) - Reach4entertainment Enterprises PLC Friday said it has completed its bank refinancing, which it had first announced in November as part of an effort to lift its capital constraints.
The company, which works in theatre promotion, completed its placing to raise GBP4.0 million through the placing of 400 million shares at a price of 1 pence each.
It subsequently entered into a new GBP9.5 million facility with PNC Business Credit, made up of a GBP1 million term loan and a GBP8.5 million revolving credit facility.
Reach4entertainment has repaid its existing loan facility agreement of GBP14.8 million with AIB Group UK PLC, settling GBP9 million in cash plus some expenses, which it funded through the proceeds of the placing and by drawing down funds under its new facility, and the remainder through the issue of 25.0 million in warrants.
The warrants are exercisable for five years at a price of 1 pence per warrant, and represent 5% of the company's enlarged share capital, as enlarged by the exercise of the warrants and the share placing.
Shares in Reach4entertainment were up 5.7% at 1.40 pence Friday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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