Harland & Wolff Group Holdings PLC (AIM:HARL) shot up 22% in early exchanges after getting the green light to advance talks relating to a new credit facility.
The firm, famous for its Belfast shipyard, which focuses on infrastructure projects said it has been cleared by the Government to advance negotiations in relation to the proposed £200 million guaranteed loan facility with UK Export Finance (UKEF) under its Export Development Guarantee Scheme.
Together with existing cash balances and expected cash flows in 2024 generated from existing contracts, the company believes it has sufficient funds to meet its working capital requirements until the new loan facility is completed.
The company will now firm up the bank syndicate, appoint a lead arranger and arrange the necessary documentation in relation to the credit and guarantee agreements as well as the security package that will be offered.
“It is likely that the security package will entail providing the Banks with a first charge on substantially all the assets of the company, similar to what has been provided to Riverstone Credit Partners in March 2022,” Harland said in a statement.
The company also said that no warrants are expected to be issued to the banks or UKEF.