Iofina signs debt refinancing deal to strengthen balance sheet

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Specialty chemical products manufacturer Iofina said it had signed a binding deal to refinance its entire debt by entering into a new loan agreement with First Financial Bank.

The facility was comprised of a 7-year term loan for US$10m on a variable annual interest rate of 2.5% plus LIBOR, and a 2-year asset based revolving line of credit for up to US$8m on a variable annual interest rate of 2.25% plus LIBOR.

The proceeds from the facility would be used to pay off existing debt and to provide working capital for the group, the company said.

A total amount of $13m was available and drawn on closing of this arrangement, it added. 'Additionally, if the group generates excess cash flow in 2021 or 2022, as detailed in the facility, Iofina is required to use 25% of such excess cash flow to prepay the term loan, with such prepayments due 30 June 2022 and 2023.'

At 9:10am: (LON:IOF) Iofina PLC share price was +1.5p at 14.5p


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