PureCircle enters new $33m facility ahead of its acquisition

29th Apr 2020 12:49

(Sharecast News) - Stevia sweetener producer PureCircle announced a new banking facility with HSBC on Wednesday, with a limit of $33m.
The London-listed firm said the proceeds of the facility would provide it with additional liquidity to meet general operational and working capital requirements in the months leading up to completion of its proposed acquisition.

It said the facility was secured by a standby letter of credit issued by HSBC Bank USA on behalf of Ingredion Incorporated.

"As announced on 9 April, the company reached agreement on the terms of a recommended acquisition whereby the entire issued and to be issued share capital of the company is proposed to be acquired by Ingredion SRSS Holdings - a wholly owned subsidiary of Ingredion Incorporated - pursuant to a scheme of arrangement," the board explained in its statement.

Interest would be payable on drawn amounts at a rate of 3% above three-months USD LIBOR, with the facility scheduled to terminate on 28 December.

At 1224 BST, shares in PureCircle were up 4.7% at 78p.