SubZero Group Limited (ASX Code:SZG) is pleased to announce that it has signed loan documentation to replace its former debtor financing facility with a new working capital facility. The facility is provided by a syndicate of lenders led by Macquarie Bank Limited. Funding will become available upon satisfaction of a number of conditions precedent.
The new working capital facility provides SubZero with a more flexible financing facility which will support SubZero’s current and future business requirements. The $16 million working capital facility expires on 31 December 2016. The new facility will provide SubZero with lower funding costs and additional capacity to manage the business for future growth.
Covenants for the new facility are stepped over the life of the loan with the net leverage debt ratio from December 2014 to be 2.5 times EBITDA and interest cover of 1.3 times EBITDA. As part of the arrangements, Macquarie Bank has taken options over 15 million issued shares. These shares have been provided by Subzero Services Pty Limited, a private company controlled by Scott Farrell.
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