25th Jan 2019 11:20
LONDON (Alliance News) - Engineering firm Redhall Group PLC on Friday said it has agreed terms with two major shareholders for new short-term loans totalling GBP2.0 million.
The short term financing facilities were agreed with Lombard Odier Investment Management and clients funds managed by Downing LLP.
Redhall said these loans were needed for "unusually high, short term capital balances" resulting from two major contracts.
The two shareholders have loaned GBP1.0 million each for an eight month period, repayable in full on October 1 and with an exit fee equivalent to 12.5% of the loan with no additional interest. The loans are considered to be related party transaction under AIM rules.
These loans are subordinated to its existing facilities with HSBC UK Bank PLC, which has consented to the loans and entered an inter-creditor agreement with all parties involved in the short-term loan.
"The board is grateful for the continued support of [Lombard Odier Investment Management], Downing and HSBC, believing it signifies their confidence in the Company's ongoing prospects," said Redhall Chair Martyn Everett.
"Market conditions remain encouraging in the majority of the company's core sectors and we see a strong pipeline of opportunities. A further update on trading will be included in the company's preliminary results for the year ended 30 September 2018," Everett added.
Redhall will release its annual results on Thursday next week. Shares were flat at 3.75 pence on Friday.
Related Shares:
RHL.L