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InfraStrata Acquires Asset Backed Term Debt Facility

Source: 2/10/2020, Location: Europe

InfraStrata, the UK quoted company focused on strategic infrastructure projects and physical asset life-cycle management, is pleased to announce that its subsidiary, Harland and Wolff (Belfast) Limited ("Harland"), has secured a 2 million asset backed term debt facility (the "Facility").

Under the terms of the Facility, Harland will drawdown the sum of 2 million immediately and the proceeds will be utilised for working capital purposes. The Facility is for a term of 24 months with the principal amount repayable as a bullet payment at the end of 24 months from the date of first drawdown. The Facility carries a coupon of 13.2% per annum, payable in equal monthly instalments in arrears. The Lender of the Facility has a first charge over all the assets of Harland. At the end of the 24-month tenure of the Facility, there will be an exit fee of 4% payable to the lender. Belfast-based Whiterock Capital Partners LLP advised Harland on the structuring of this Facility.

In addition, the Company is pleased to announce the restructuring of the sum of 555,555.58 that remains outstanding, and was drawn down as the second tranche, of the 2.2 million loan facility with Riverfort Global Opportunities PCC Limited and YA II PN Limited (the "Investors") (the "Loan"). Details of this second drawdown under the Loan were announced on 14 November 2019. Under the restructuring, the Company will no longer be required to make a bullet repayment of 555,555.58 on 14 February 2020. Instead, a sum of 55,555.58 of the principal plus fees and accrued interest to date of, in aggregate, 110,624.98 will be paid to the Investors immediately, and the remaining 500,000 of principal ("Remaining Loan") will be amortised over a period of 10 months commencing 31 March 2020 and ending on 31 December 2020. The amortised payment schedule will carry an interest rate of 12% per annum from 14 February 2020, payable monthly in arrears. The Remaining Loan is not convertible into shares, save in the event of default.

Further, the final exercise dates for warrants issued to the Investors pursuant to the terms of the Loan, as announced on 1 October 2019 and 14 November 2019, have been extended to 1 October 2023 and 14 November 2023 respectively.

Save for the above, all other terms of the Loan remain the same.

John Wood, Interim Chairman and CEO of InfraStrata, 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."

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Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

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