LONDON (Alliance News) - Reach4Entertainment Enterprises PLC on Friday said it has secured a new funding deal with PNC Business Credit which will be used to refinance the remainder of its loan with Allied Irish Bank.
Reach4Entertainment reached a deal with Allied Irish Bank in June to restructure its outstanding GBP14.6 million loan debt, whereby GBP5.2 million of the loan will be converted into Reach4Entertainment shares and the balance will be repaid in cash.
The group has now secured a deal with PNC Business Credit for a GBP9.5 million loan which will refinancing the Allied Irish Bank loan and provide the company with working capital. PNC Business Credit is a unit of PNC Financial Services, the US banking group.
"We are delighted to receive this new debt facility offer from PNC. This is an important milestone in our refinancing plans which provides additional clarity over our medium term funding structure. We now look forward to finalising our plans to raise the equity capital required," said David Stoller, Reach4Entertainment's chairman.
Shares in Reach4Entertainment were down 2.9% to 2.4999 pence on Friday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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