LONDON (Alliance News) - SerVision PLC Friday said it has struck a deal to triple the maximum amount that can be drawn down under the existing loan agreement with its lender, YA II PN Ltd.
SerVision, which develops and manufactures digital security systems, will now be able to access GBP3.0 million under the loan agreement with YA II, formerly known as YA Global Master SPV Ltd, compared to the original limit of GBP1.0 million.
SerVision had already drawndown GBP825,000 under the loan agreement prior to amending the deal on Friday, prompting the company to up the limit available to counter the small amount of headroom that was left.
The new limit means SerVision now has just under GBP2.2 million available to drawdown from the facility.
Importantly, the current outstanding amount of the facility as of Friday was GBP55,253, carrying an interest rate of 12% per year.
However, SerVision has immediately drawndown USD786,500 following the amendment, equal to around GBP608,071, to repay that outstanding amount plus a USD32,825, or GBP25,381, implementation fee.
That means the net proceeds of that drawdown total USD551,846, equal to GBP426,715, which will be used for general working capital.
That drawdown will be repaid in 11 equal monthly instalments of USD40,200, or just over GBP31,000, plus interest with the remaining balance due to be settled on July 6, 2017.
The original loan agreement was signed back in September 2014 and the loan was backed by a standby equity distribution agreement. SerVision has not utilised the standby agreement and said Friday that it does not intend to do so any time soon.
The terms of the standby equity distribution agreement remain unchanged apart from the commitment period, which has been extended by one year to November 2017.
SerVision shares were trading down 1.2% to 1.61 pence per share on Friday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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