10th Jan 2019 12:20
LONDON (Alliance News) - MXC Capital Ltd said Thursday it will invest a further GBP9.0 million in IDE Group Holdings PLC through the subscription of secured loan notes.
Technology investor MXC Capital currently holds a 43% stake in IT services provider IDE Group.
The loan notes subscription is being undertaken in two tranches. The first tranche has been subscribed for, totalling GBP5.3 million: GBP4.3 million by MXC Capital and GBP1 million by another, unnamed, shareholder.
The proceeds of the first tranche will be used to repay some of IDE's GBP8.3 million debt with NatWest Bank PLC.
The second tranche, totalling GBP4.7 million, will be made available for subscription by way of an open offer but will be underwritten by MXC Capital. About GBP4.1 million of the second tranche will be used to repay IDE's debt to NatWest. The remaining part of the second tranche will be used for working capital.
The loan notes have a term of six years with an annual coupon of 12%, which is payable at the end of the term. The notes carry an arrangement fee of 2.5% and an exit fee of 2.5%
Shares in MXC Capital were untraded Thursday at 1.27 pence each. IDE Group was trading up 2.0% at 2.09p.
Related Shares:
MXCP.LIDE.L