1st Nov 2018 12:46
LONDON (Alliance News) - Book publishing firm Quarto Group Inc said Thursday it had agreed with a banking syndicate to extend its debt maturity as it also secured further funding.
The deal will see its debt facilities extended to the end of August 2020. The revised facilities also "incorporate an immediate reduction in bank debt and a subsequent amortisation programme."
As part of the syndicate agreement, some of the larger shareholders and related firms in Quarto have agreed to provide unsecured, subordinated loans worth USD13 million to the firm. These funds will be used to reduce bank facilities and provide additional working capital. They will also be repayable at the end of August 2020.
"We are delighted to have concluded negotiations with our banking syndicate to extend the term of our facilities," Quarto Chief Executive Officer Chuk Kin Lau said. "This gives us a stable position to continue our focus on improving the performance of the business and reducing debt to a more acceptable level."
In mid September, Quarto reported its interim pretax loss narrowed to USD8.9 million on revenue of USD56.2 million. This is compared to a USD9.2 million loss on USD50.2 million revenue the year prior.
Shares in Quarto were 4.7% higher at 71.75 pence on Thursday.
Related Shares:
QRT.L