LONDON (Alliance News) - reach4entertainment Enterprises PLC Tuesday said it expects to save about GBP220,000 in interest over 2014 after completing a bank refinancing with Allied Irish Bank Group (UK) PLC.
In a statement, reach4entertainment said covenants have been agreed for a six-year term, with a new interest rate of 3.0 percentage points over Libor, for its GBP14.8 million revolving credit facility.
Numerous capital repayments will be made over the term of the facility at amounts and dates specified in the facility agreement, reach4entertainment said.
The first repayment, for GBP200,000, is due in April 2015.
The new agreement replaces reach4entertainment's previous agreement with AIB, which was due to expire in May 2015.
"[It] provides a meaningful reduction in the interest rate against the group's previous facility of 4.0% over Libor, rising to 5.0% over LIBOR from April 26 2014," reach4entertainment said.
reach4entertainment shares were Tuesday quoted at 7.00 pence, up 1.25 pence, or 22%, making them the top AIM gainer in early trade.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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