Reach4Entertainment secures new agreement on lending facilities

8th Apr 2014 09:44

Integrated media business company Reach4Entertainment cheered investors on Tuesday by announcing the completion of a bank refinancing. The new agreement has a six-year term and a new interest rate of 3% above LIBOR on its £14.8m revolving credit facility. The first repayment of £0.2m is due in April 2015. The previous agreement, which had been due to expire in May next year, had a higher interest rate at 4% above LIBOR and would have risen to 5% from April 26th. As a result of this reduction, the group expects to save around £0.22m in the 2014 calander year. The share price jumped strongly early on, although eased back to a rise of 4.43% to 6.01p by 09:55 on Tuesday.NR