Bigblu Broadband PLC (LON: BBB) have seen their shares in green after the firm agreed a credit facility deal with Santander (LON: BNC).
At the start of December, Bigblu saw their shares dip as its debt widened on further investment.
The Company said that during the period, it had also secured new funding to accelerate Quickline’s growth plans, and had launched a new partnership with Eurobroadband Infrastructure.
Today, the firm said that it had agreed a new £30 million revolving credit facility with Santander Bank UK PLC, a firm which recently invested into startup Ebury.
This new facility will be used to replaces the two tranches of loan notes, totaling £12.0 million issued in 2016 by Business Growth Fund and the company’s £10.0 million revolving credit facility with FTSE100 listed HSBC PLC.
It will also be used to provide additional working capital to support the company, Bigblu said.
Bigblu said that HSBC will continue to provide a £4 million revolving credit facility and operational banking support to the company’s UK fixed wireless subsidiary QCL Holdings Ltd.
The new deal with Santander is a three year loan agreement, with the option to extend for up to a further two years.
“As a result, there will be a significant reduction in the group’s annual cost of debt and net interest payments,” Bigblu said.
Business Growth Fund continues to own 4.5 million shares in Bigblu, the company said.
As part of its initial subscription for the loan notes in 2016, Business Growth Fund had options over 4.9 million ordinary shares at an exercise price of 112.5 pence, expiring August 2021, and a £2.4 million convertible loan note convertible at an exercise price of 135 pence per share.
Bigblu has said it agreed to extend the 4.9 million options to May 2024, and granted Business Growth Fund an additional 1.8 million options at an exercise price of 135p pence expiring May 2024.
Shares of Bigblu trade at 99p (+0.91%). 16/12/19 14:37BST.
