8th Dec 2021 14:19
(Alliance News) - IDE Group Holdings PLC announced on Wednesday it had entered into a short-term loan agreement with private equity firm MXC Capital Ltd.
The Dorset-based IT service management company said the loan is for GBP1 million and carries an arrangement fee of 3.75%. The interest rate varies between 1.5% and 3%, with the rate being lower for quicker repayment. The loan will be unsecured and subordinated to the outstanding loan notes.
MXC had previously agreed to invest up to GBP9 million in IDE Group back in January 2019 by way of a subscription for secured loan notes. The notes had a term of six years, an annual coupon of 12%, and arrangement and exit fees of 2.5%.
MXC said it expects the new loan to be repaid by March 31. If the loan is not repaid by then, the terms will revert to the same terms as the outstanding loan notes announced in January 2019.
MXC is a related party of IDE as they are a substantial shareholder, holding a 43% stake, and because Ian Smith, chief executive of MXC is also the executive director of IDE.
Shares in IDE were up 2.0% at 1.30 pence each on Wednesday in London.
By Heather Rydings; [email protected]
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