12th Feb 2019 10:30
LONDON (Alliance News) - Iofina PLC said Tuesday that it has secured an extension to its loan notes and term loan facility provided by Stena Investment Sarl, allowing the company to continue upgrading its plants and improve iodine production.
The company also said that it is now in a better position to build upon last year's improved performance with increased profitability for 2019 and beyond.
The repayment date for the company's convertible loan notes and Stena loan has been extended to July 1, 2020. Iofina also has secured the removal of debt convertibility with the loan notes switching to a term loan.
The interest rate on the loan notes and Stena loan has been adjusted to 7.5%, effective from the start of January. However, interest rates on Stena loan will rise to 12% on June 1.
Iofina currently has debt of USD22.4 million under notes and USD3.3 million under the Stena loan.
President & CEO Tom Becker said: ''Extending the terms of the Notes and Facility to 1 July 2020 will allow us to continue upgrading and expanding our plants, which in turn will further boost the level of Iodine production. At the same time the removal of the debt convertibility is a huge positive for our shareholders. With iodine prices continuing to rise we are well positioned to continue the momentum built over the last few years."
Shares in Iofina were up 4.9% at 18.60 pence each on Tuesday.
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