10th Jul 2019 11:18
(Alliance News) - FIH Group PLC said Wednesday it has secured a new GBP13.9 million long-term mortgage loan, which will be used to refinance a GBP10 million short term temporary bank facility used to partly fund the acquisition of an art storage warehouse in Leyton, east London, in December.
The Falklands-focused retail and logistics firm said the mortgage loan will increase bank borrowings by GBP3.9 million and cash reserves also by GBP3.9 million.
The mortgage loan has a 20-year repayment profile, and the cost of borrowing has been fixed at 3.0% per annum for 10 years, due to FIH entering an interest rate swap.
FIH also noted an announcement by the Falkland Islands government on Friday last week, of the agreement of a new commercial air link with LATAM Airlines Brazil that will connect the islands to the airport in Sao Paulo, Brazil.
FIH said the agreement will greatly improve accessibility to the islands and offer greater opportunities for tourism.
"With the draw-down of new long-term bank facilities, the group has strengthened its cash reserves and locked in funding at historically low rates. With the group's finances on a solid long-term footing FIH remains well placed over the medium-term to take advantage of opportunities across the group and the exciting developments emerging in the Falklands," said Chief Executive Officer John Foster.
Shares in FIH Group were untraded on Wednesday, last quoted at 316.00 pence.
Related Shares:
Fih Group