LONDON (ShareCast) - (Sharecast News) - Craven House Capital announced on Friday that its wholly-owned subsidiary, Craven House Capital North America, has entered into a loan agreement with LM Funding America (LMFA).
The AIM-traded firm noted that it is a 26% shareholder of LMFA.

It explained that, under the terms of the loan agreement, Craven House Capital North America will borrow $1.5m (£1.14m) from LMFA.

The proceeds from the loan would provide liquidity for investment purposes in advance of the repayment of the $3.6m convertible loan due from LMFA to Craven House Capital North America, which remained outstanding.

In response to discussions with LMFA regarding the extension of the maturity date of the convertible loan, Craven House Capital North America has agreed to extend the maturity date of the convertible loan to 15 April 2021 from 16 January 2020.

"In order to accommodate this, Craven House Capital North America requested a partial repayment of $1.5m against the convertible loan, however, at the request of LMFA this has been structured as separate loan facility in the form of the LMFA loan, which provides additional benefit to Craven House Capital North America as the LMFA loan is repayable in shares of LMFA at a premium to the current market price of LMFA," the board explained in its statement.

The LMFA loan would be repayable on 15 April 2020, with interest payable at a rate of 6% per annum.

Craven House said the LMFA loan would repayable in cash or, alternatively, the principal and all accrued interest could be repaid via the transfer of 640,000 shares in LMFA from Craven House Capital North America to LMFA.

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