RE: Raise20 Oct 2022 17:48
From the 2021 Common Terms Agreement
All of the loans carry an interest rate of LIBOR plus 3 per cent. until 31 December 2022. Thereafter, the interest rate on the term loans will be LIBOR plus 5 per cent., and for the working capital loans it will be LIBOR plus 4.75 per cent. The margins over LIBOR are subject to a ratchet, that will lower the applicable margin as the Group’s leverage improves.
As the Company has previously announced, by removing the obligation to pay PIK interest during calendar years 2021 and 2022, this has saved the Company over U.S.$38 million of interest that otherwise would have been payable under the terms of the 2020 Common Terms Agreement.
However, PIK interest would accrue under the terms of the 2021 Common Terms Agreement if either of the First Equity Raise Condition or Second Equity Raise Condition are not met. If such PIK interest were to accrue, it would be at 5 per cent. per annum for so long as leverage remains above 5x. If PIK interest begins to accrue as a consequent of the First Equity Raise Condition not being met, all accrued PIK would be automatically cancelled if and when the Second Equity Raise Condition is met.