KRM22 PLC (AIM:KRM, OTC:KRMCF) has announced a new £5mln convertible loan facility agreement arranged by its largest shareholder, Trading Technologies International, which secured the agreement after a competitive process.
The technology and software investment company will initially draw down £4mln under the facility, replacing its existing debt facility provided by affiliates of Kestrel Partners LLP.
The remaining outstanding debt and charges of approximately £3.1mln from the existing Kestrel debt facility will be repaid early using the proceeds of the new facility.
KRM22 intends to use the new facility to strengthen its balance sheet and provide access to working capital and growth capital, supporting the company's short to mid-term opportunities.
Interest on the debt drawn down will be based on the aggregate of the SOFR average and a margin of 5.5%, with a minimum annual percentage rate of 9.25%, with interest payable quarterly.
Following the agreement, Trading Technologies has the right to request a conversion of the facility into up to 3,566,630 new ordinary shares in KRM22.
To facilitate the full conversion of the facility, KRM22 will convene a general meeting to approve the allotment of new ordinary shares.
Stephen Casner, chief executive of KRM22, commented: "We are very pleased to announce this new debt facility which will continue to fuel the strong revenue growth that KRM22 has experienced over the past 18 months.
“Trading Technologies continues to demonstrate what an exceptional partner they are for KRM22 as together we bring a new generation of risk systems to the capital markets industry."