27th Aug 2019 12:26
(Alliance News) - Education courses provider Malvern International PLC on Tuesday said it has secured a GBP6.6 million loan to repay a shareholder loan, provide working capital and fund a potential acquisition.
Lenders Boost & Co Ltd issued the financing which comprises of two tranches. The first tranche of GBP2.6 million will be drawn immediately and GBP564,000 from the funds will be used to repay a debt owed to KSP Investments Pte Ltd, the company's largest shareholder.
An optional second tranche worth a further GBP4.0 million will be available to Malvern to fund a permitted acquisition, though this part of the agreement will be subject to certain conditions, the company said.
Interest of the amount drawn from the facility will be the higher of either 10% per year or 8% per year plus the London Interbank Offered Rate. An arrangement fee of 1.3% is also payable on the drawn amounts, Malvern said.
Malvern will also issue Boost with warrants which are calculated at 12% of the 28-day average share price, so for the first tranche, the company will issue the lenders with 12.2 million shares.
Chief Executive Sam Malafeh said: "We are pleased to have secured this loan facility from Boost which will provide additional cash resources to support the group's continuing growth and strategic development and enable us to accelerate rollout of some of our new products."
Shares in Malvern International were untraded early on Tuesday afternoon, last quoted at 2.49 pence each.
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