Aferian extends maturity dates on bank facilities, shareholder loan

7th May 2024 13:14

(Sharecast News) - Video streaming specialist Aferian announced an extension of the maturity dates for its senior loan facilities and shareholder loan on Tuesday.

The AIM-traded firm said its senior loan facilities, totalling $16.5m, saw discussions with bank lenders resulting in an extension from the original maturity date of 23 December 2024 to 30 September 2025.

As of 30 April, $12.5m had been drawn under the facilities.

The board said the interest margin payable on the drawn amount had been adjusted to range between 3% and 4.5% over SONIA, with the removal of certain financial covenants and the relaxation of liquidity covenants, providing the group with increased operational flexibility.

Aferian's board said it considered the revised terms to be in alignment with the group's current and projected needs, supporting the strategic changes it previously outlined.

Additionally, the directors said they intended to collaborate with bank lenders to explore refinancing options for the senior banking facilities well before the extended maturity date.

In the case of the shareholder loan provided by funds managed by Kestrel Partners, an extension was agreed, taking the maturity date from 31 March 2025 to 31 January 2026.

The board said the extension was necessary to comply with the requirements of the bank lenders in connection with the extension and revisions to the senior banking facilities.

Adjustments to the terms of the shareholder loan and related warrants included an increase in the annual coupon to 15%, with interest accruing quarterly and paid in kind, and a reduction in the strike price of the warrants from 17p to 5p per share.

"Securing an extension to our senior loan facilities and shareholder loan combined with the management actions taken to streamline the operations of the group in the last 12 months now provides a stable financial platform on which the group can move forward," said chairman Mark Wells.

Aferian said it expected to report its full-year audited results for the 12 months ended 30 November later in May.

At 1246 BST, Aferian shares were down 1.69% at 7.25p.

Reporting by Josh White for Sharecast.com.