(Alliance News) - Distribution Finance Capital Holdings PLC on Monday said it has now agreed specific terms and covenants with lenders to support its loan book during a waiver period, with its loan book balance to shrink near-term.
The company, itself a lender, announced it was in talks with its senior and senior mezzanine facility lenders on April 28 with the goal of agreeing "a temporary waiver of an early amortisation provision in its funding facilities" until June 30.
The firm has now agreed terms and covenants with its lenders which support the loan book through to June 30. However, given the terms of the waiver, the loan book balance is to reduce near-term as previously disclosed.
Distribution Finance said the lower balance will still be enough "to support modest levels of new lending to" the company's existing customer base.
Details of the firm's future funding strategy will be announced along with its annual 2019 results, due for publication in early June with an annual general meeting to take place after that.
Shares in Distribution Finance were untraded at 40.00 pence in London on Monday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Distrib. Fin. (DFCH)