Aferian PLC, a B2B video streaming solutions company, has announced the extension of its senior loan facilities and shareholder loan. The company has secured an extension of its $16.5 million senior banking facilities, previously due to mature on 23 December 2024, to 30 September 2025. The interest margin payable on the drawn amount of the facilities has been increased to between 3% to 4.5% over Sonia. The leverage, interest cover, and fixed charge cover ratio covenants have been removed, providing the Group with greater flexibility.
In addition, the company has agreed with the Kestrel Lenders to extend the maturity date of the Shareholder Loan from 31 March 2025 to 31 January 2026. The terms of the Shareholder Loan and related warrants were also amended, reflecting a 5% increase in the annual coupon on the Shareholder Loan and a reduction in the strike price of the Warrants from 17p to 5p per ordinary share.
Mark Wells, Chairman of Aferian PLC, stated, "Securing an extension to our senior loan facilities and shareholder loan combined with the management actions taken to streamline the operations of the Group in the last twelve months now provides a stable financial platform on which the Group can move forward."
The Group expects to report its full year audited results for the year ended 30 November 2023 later in May 2024. The revisions to the terms of the Shareholder Loan constitute a related party transaction under the AIM Rules for Companies, and the Directors consider the terms to be fair and reasonable insofar as shareholders are concerned.
Investec Bank plc is acting exclusively for the Company in connection with the subject matter. The announcement contains forward-looking statements, and no assurance can be given that any particular expectation will be met.