(Alliance News) - Infrastrata PLC on Monday said it has entered into an asset-backed GBP2 million debt facility to fund working capital needs.
The funds will be drawn down immediately by the natural gas storage firm's Harland & Wolff (Belfast) Ltd subsidiary. Infrastrata agreed to acquire Harland & Wolff in October, from administrator BDO NI, saving the Belfast shipyard, where the Titanic cruise liner was built, from closure.
The two-year loan facility carries an annual coupon on 13.2%, and is payable of in equal monthly sums.
At the end of the two-year period, Infrastrata will pay a 4% exit fee to its lenders.
The company added that it has restructured an outstanding amount of GBP555,556 of a loan with investors Riverfort Global Opportunities PCC Ltd and YA II PN Ltd.
Infrastrata will no longer make a full payment of GBP555,556 and will instead immediately pay the investors a sum of GBP166,181, a figure which includes interest accrued on the loan.
A remaining amount of GBP500,000 will be repaid monthly over 10 months beginning March 31. The amount carries an annual interest rate of 12%.
Chair John Wood said: "We are pleased to have now put in place a debt facility for Harland and restructured the second tranche of the loan facility that we drew down in order to fund part of the costs of the Harland acquisition.
"The introduction of this asset-backed debt facility validates our thesis of leveraging physical assets and creating cashflow sources. This has been possible due to the acquisition of Harland's physical assets, something that we would not have been able to achieve with the Company's portfolio of intangible assets."
Shares in the company were 3.5% lower at 0.29 pence each in London on Monday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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