GP Industries has entered into two separate agreements, the first being a $80 million three-year term loan facility agreement, and the other, a $25 million three-year term loan facility agreement.
The proceeds from each of the facilities will allow the company to repay its outstanding term loans, which have final maturity dates in May 2021
The proceeds will also be used for the company’s general corporate and working capital purposes.
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The agreements come with a caveat in that should Gold Peak Industries (Holdings) (GPIH), the controlling shareholder of GP Industries, ceases to legally and beneficially own at least 51% of the shares in GP Industries, the relevant facility is liable to be cancelled. All its outstanding loans, plus interest, will be due and payable immediately.
GPIH currently owns 85.55% of shares in GP Industries.
Shares in GP Industries closed 0.5 cent lower or 0.8% down at 58.5 cents on March 29.
