Westminster Group repays £2.6m in debt

(Sharecast News) - Managed services and security technology company Westminster Group announced on Monday that, following completion of its placing it has redeemed all remaining convertible secured loan notes and the convertible unsecured loan stock, and fully repaid the mezzanine loan facility from RiverFort and YA II.
The AIM-traded firm said there were no conversions of the loan notes.

It said the repayment of the debts, totalling around £2.6m, both strengthened its balance sheet and would result in an annual saving of about £0.3m in interest and fees.

The repayment was a "major objective" of the recent £5m placing, which completed on 22 December.

"Following the debt repayment, we now enter 2021 debt free except for small operating leases, with a greatly strengthened balance sheet and in a much stronger position to deal with the current global uncertainties," said chief financial officer Mark Hughes.

"We also have the funding in place for delivery of existing and potential near-term new contracts, as described in the circular dated 3 December."

At 0900 GMT, shares in Westminster Group were up 0.96% at 4.19p.