(Alliance News) - Proactis Holdings PLC on Tuesday said it has agreed a fundamental reset of its HSBC UK banking facilities with revised covenants, an optional expiry extension, and another GBP3 million of short-term capital.
Shares in Proactis ended 36% higher in London at 29.20 pence.
Proactis said the reset reflects its "much improved financial position and growth strategy and the continued support of HSBC UK".
Changes include the rescheduling of the loan's amortisation profile, allowing for another GBP3 million of capital in the short term to support the spend management solution company's growth strategy.
"As previously described, the group has made encouraging progress in line with its strategy during the six-month period ended 31 January 2020 which will be presented in detail within the group's interim results announcement scheduled for 29 April 2020," said Proactis.
On top of this, covenants have been revised to give "material headroom to the current business plan" and the firm has gains the conditional option to extend the current agreement's expiration date to July 2023 from July 2022.
Chief Executive Tim Sykes said: "We appreciate the continued support of our long-term partner, HSBC UK, and look forward to strengthening our relationship further. The reset of the basis of our facilities with HSBC UK is a fundamental foundation for the group's mid-term business plan and it gives us great confidence that this business is fully funded to deliver our current growth plan for the foreseeable future."
By Anna Farley; annafarley@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
