InterBulk Group has signed a revised banking agreement with Lloyds Banking Group.
The transportation tanks and services provider will have total banking facilities of £95.2m. This debt includes £33m classified as subordinated mezzanine debt with a non-cash paying interest margin – this is all repayable on 30 September 2012. The additional non-cash interest is equivalent to £2.5m a year, which will reduce earnings per share.
There is an arrangement fee of £1.4m, of which £900,000 is deferred until September 2012. Lloyds receives an equity warrant entitling it to 5% of the current share capital of InterBulk at an exercise price of 10p a share.
Shares in InterBulk rose 0.375p to 3.375p each, which values the company at £10.2m. The shares have fallen by one-fifth over the past year.
Profits for the year to September 2009 will be in line with expectations of £3m but next year’s profits and earnings per share will be lower. However, there will be additional costs from the bank refinancing and the administration of Artenius UK Ltd. Artenius was a client of the dry bulk business and generated annualised revenues of £6m. The Artenius write-off could be as much as £1.3m.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.