Kinovo refinances £1.5m term loan with HSBC
By Josh White
Date: Wednesday 05 Oct 2022
(Sharecast News) - Property services specialist Kinovo has refinanced its £1.5m term loan with HSBC UK, it announced on Wednesday, together with the annual renewal of its current £2.5m overdraft facility.
The AIM-traded firm said that as at 30 September, its net debt position had narrowed to £0.1m from £1.7m at the end of 2022's first half, with a cash balance of £1.7m, down from £2.2m.
It said the term loan is a 12-month facility, with quarterly repayments of £0.38m starting in November.
The interest cost on the loan would be 4% above the compounded sterling overnight index average (SONIA), with the total expenses permitted to be incurred on DCB Kent being £4.6m.
Kinovo said the overdraft would be repayable on demand, and subject to an annual review, with its cost held at an interest rate of 3% above the Bank of England base rate.
The covenants on the term loan would be tested monthly and quarterly on the achievement of minimum levels of EBITDA, a minimum liquidity, and interest cover.
"We are pleased to have agreed new debt facilities with our partner HSBC UK, strengthening Kinovo's financial stability," said chief executive officer David Bullen.
"As highlighted in our recent trading update, despite the challenging macroeconomic conditions, the momentum of our strong operational and financial performance has been maintained throughout the first half of the year."
At 1116 BST, shares in Kinovo were up 14.29% at 36p.
Reporting by Josh White at Sharecast.com.
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