Ondo InsurTech PLC (LSE:ONDO) has rescheduled loan terms with its largest shareholder, HomeServe Assistance Limited. These loans were part of the 2022 acquisition of the LeakBot business from HomeServe.
Key changes include extending the loan’s maturity date by a year to March 31, 2030, deferring principal repayments by a year to start on March 31, 2027, and rolling up interest for an additional year until March 31, 2026. The interest rate remains at 12% until 2027, rising to 14% thereafter.
Ondo can repay the loans with 10 days’ notice and has pledged to use at least 40% of proceeds from warrant exercises to reduce the debt.
As of late September, 26.94 million warrants remain, valued at up to £6 million.
This restructuring gives Ondo greater financial flexibility while it continues developing technology to prevent home insurance claims.
In the same announcement, chairman Mark Wood reiterated Ondo's pledge to be earnings (EBITDA) positive in the second half of next year without the need for further working capital funding.