Live Company Group (AIM:LVCG) has restructured its balance sheet with a new long-term CBILS lending facility with Close Leasing, part of merchant bank Close Brothers Group.
The live events and entertainment group said its subsidiary, Bricklive International, has entered into a sale and lease back under a hire purchase agreement for £1.5 million with Close Leasing for five years and with a headline rate of 7.68%.
The proceeds from the facility will be used to repay the several investors including Riverfort Global Opportunities PCC Limited and YA II PN Limited as well as for general working capital.
Chairman of LVCG, David Ciclitira, has guaranteed £300,000 of the loan via a personal guarantee for the entire five-year duration of the loan, subject to an annual review by Close Leasing, and will be compensated annually on this amount at 7.06%, the group outlined.
Shares in Live Company Group were trading 17.07% higher this morning at 12p.
Live Company also confirmed its repayment and closing of a lending facility with Riverfort and YA II which involved paying the outstanding balance and interest of around £1.196m.
In addition, an equity sharing agreement with the two investors has been cancelled as of August 14 with around 5.7m shares held by the two investors - representing 6.51% of the Company's issued share capital - purchased into trust for around £57,000.
"The debt restructuring provides us with an innovative way of reducing our cost of capital for the next five years. I would like to thank Riverfort for their support over the past few years when we needed it most,” said David Ciclitira, Chairman of Live Company Group.
He added, “We are delighted to have formed a new partnership with the highly-regarded Close Brothers Ltd (introduced by Sedulo Funding Solutions Ltd) and we look forward to working with them over the next stage of our growth.”
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