Business
Debt Refinancing and Working Capital Loan
Debt Refinancing and Working Capital Loan.
About this update from Pacsco Limited
[{"type":"text","content":"\n \n \n The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \n \n \n \n \n 29 July 2022\n \n \n \n Agriterra Limited\n \n \n \n ('Agriterra' or the 'Company')\n \n \n Agriterra Limited / Ticker: AGTA / Index: AIM / Sector: Agriculture\n \n \n \n \n \n \n \n \n Debt Refinancing and Working Capital Loan\n \n \n \n \n \n \n \n \n Agriterra Limited, the AIM-quoted African agricultural company, is pleased to announce a significant injection of new funds into the Company from its major shareholder, which will enable:\n \n \n \n \n \n ·\n the immediate repayment of an existing, high cost, US$6.1m working capital facility owed to an external banking institution; and\n \n \n \n \n \n ·\n cheaper financing of grain purchasing in Mozambique without making use of local external banking institution working capital/overdraft facilities (which typically carry higher interest rates, reflecting the local price of borrowing in Mozambique).\n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n \n \n ·\n Agriterra has today secured new debt funding from its majority shareholder, Magister Investments Limited (\"Magister\"), in an aggregate amount of US$7.9m (the \"Magister Loans\"). \n \n \n \n \n \n ·\n The Magister Loans comprise two unsecured facilities of US$6.1m and US$1.8m respectively and are being provided to the Company immediately, in full, in order to facilitate the Company's wholly owned subsidiary, Desenvolvemento E Comercializacao Agricola Limitada (\"DECA\") financing:\n \n \n \n \n \n Ø\n the full repayment of DECA's existing US$6.1m debt facilities with First Capital Bank, S.A. (the \"FCB Facility\") (the \"External Repayment\"); and\n \n \n \n \n \n Ø\n grain purchasing in Mozambique without making use of local bank working capital/overdraft facilities.\n \n \n \n \n \n ·\n Management estimates that this debt refinancing will enable the Company to save approximately US$600,000 in annual interest and fee costs during the first year.\n \n \n \n \n \n \n Background\n \n \n \n \n \n \n The External Repayment (which is being facilita...