12th Jun 2023 12:49
(Alliance News) - Vector Capital PLC on Monday said it has extended its debt facilities to GBP45.0 million, alongside increasing its loan from Vector Holdings Ltd to GBP4 million.
Vector Capital is a London-based commercial lending group, while Vector Holdings is the parent company of Vector Capital with a 75% interest.
Vector Capital said its wholesale bank debt providers increased the facilities by GBP5.0 million.
It now has the capacity to drawdown GBP2.5 million towards loans secured by second charges, Vector Capital said, allowing it "the flexibility for cautious and selective expansion of the group's loan book into higher margin loan agreements".
Vector Capital also extended its loan facilities provided by Vector Holding to GBP4 million from GBP3 million. All other terms relating to the previous agreement remain unchanged.
In late December, the debt agreement was revised to make the interest payable on the outstanding balance on the last business day of March, June, September and December at a rate of 6.25%.
"The revised terms of the loan provide the company with access to very competitively priced finance, significantly below the rate currently offered by third party funders, to be employed to increase the loan book at higher margins," Vector Capital said.
Vector Capital Chief Executive Officer Agam Jain added: "These facilities, combined with our resilient pipeline of new loan opportunities and the strength of our loan management systems, provides a base from which to target future growth as interest rates stabilise."
The original GBP3 million loan was entered into in November 2020.
By Greg Rosenvinge, Alliance News reporter
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