Cashbox (AIM: CBOX) has restructured its £5.7 million facility with Bank of Scotland, expecting to save £1.2 million in cash per year, while taking its total loan from Synergy Capital to £2.3 million by securing a further £0.8 million.
Under the terms of the refinancing of the Bank of Scotland facility, the regular capital payments were reduced and deferred in exchange for a more significant bullet repayment at the end of the term of the facility, while the interest margin payable on the facility has been increased to 4% over three month LIBOR (London Interbank Offered Rate).
The terms of the new loan from Synergy Capital are the same as those of the original loan, except that the loan is for three years, the annual interest rate is 12% and the conversion rate is fixed at 2.8 pence per share.