1st May 2019 13:42
LONDON (Alliance News) - Management Resources Solutions PLC said on Wednesday it has completed the first stage of its debt refinancing, with the replacement of facilities.
The maintenance support services provider has agreed to an AUD3.2 million debt facility with Hermes Capital, which is a one-year term loan with an interest rate of 12% per annum.
Principal repayments of AUD100,000 on the facility will be made monthly for the duration of the term loan with the balance repayable at the end of the period.
The new facility replaces the existing AUD1.5 million working capital facility provided by the vendor of subsidiary Bachmann Plant Hire Pty Ltd Greg Bachmann, and the AUD1.7 million Bachmann rent to buy facility.
The new facility is expected to generate net monthly cashflow savings of AUD70,000 for Management Resource on principal and interest payments.
"This is a fantastic achievement for the company and Greg Bachmann. This allows us to move forward and concentrate on finalising the remaining large debt refinancing. I would also like to take this opportunity to thank Greg for his assistance over the past three years since MRS acquired BPH, and we wish him well for his future retirement and farming endeavours," said Chief Executive Officer Paul Brenton.
Shares in Management Resource Solutions were up 4.5% at 3.92 pence on Wednesday.
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