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MXC Capital subscribes for ?1.23m of secured loan notes in IDE
30th Dec 2019 15:35
(Sharecast News) - Technology-focussed adviser and investor MXC Capital has subscribed for £1.23m of secured loan notes in IDE, it announced on Monday, as part of a total £1.5m issue.
The AIM-traded firm said the proceeds of the IDE loan notes would be used by IDE to fully repay its finance leases, and provide additional working capital.
It said the terms of the loan notes were the same as those issued in January and March, and could be found below.
Following the subscription, MXC held £9.23m of the £11.5m IDE loan notes, and 43.1% of the issued share capital of IDE.
MXC described IDE as a mid-market network, cloud and information technology managed services provider.
Ian Smith, chief executive officer of MXC, is an executive director of IDE, with MXC Capital Markets LLP acting as financial adviser to IDE, the board disclosed.
"The IDE loan notes have a term of six years and an annual coupon of 12%, which is rolled up, compounded annually and payable at the end of the term," the board said in its statement.
"The IDE loan notes carry an arrangement fee of 2.5%, payable at the end of term, and an exit fee of 2.5%, also payable at the end of the term, both payable pro-rata to the subscribers of IDE loan notes.
"The IDE loan notes are secured on IDE's assets."
MSC said the IDE loan notes could be redeemed at any time at IDE's option, however, should IDE opt to redeem them prior to the end of the term, all interest due until the end of the term would become payable, together with the arrangement and exit fees, upon the early redemption.
At 1445 GMT, shares in MXC Capital were down 1.66% at 79.66p.
The AIM-traded firm said the proceeds of the IDE loan notes would be used by IDE to fully repay its finance leases, and provide additional working capital.
It said the terms of the loan notes were the same as those issued in January and March, and could be found below.
Following the subscription, MXC held £9.23m of the £11.5m IDE loan notes, and 43.1% of the issued share capital of IDE.
MXC described IDE as a mid-market network, cloud and information technology managed services provider.
Ian Smith, chief executive officer of MXC, is an executive director of IDE, with MXC Capital Markets LLP acting as financial adviser to IDE, the board disclosed.
"The IDE loan notes have a term of six years and an annual coupon of 12%, which is rolled up, compounded annually and payable at the end of the term," the board said in its statement.
"The IDE loan notes carry an arrangement fee of 2.5%, payable at the end of term, and an exit fee of 2.5%, also payable at the end of the term, both payable pro-rata to the subscribers of IDE loan notes.
"The IDE loan notes are secured on IDE's assets."
MSC said the IDE loan notes could be redeemed at any time at IDE's option, however, should IDE opt to redeem them prior to the end of the term, all interest due until the end of the term would become payable, together with the arrangement and exit fees, upon the early redemption.
At 1445 GMT, shares in MXC Capital were down 1.66% at 79.66p.