The iodine maker said the necessary internal approvals have now been obtained by the lender and the transaction is in the final legal documentation phase, with the specifics of the transaction to be detailed to the market once documentation is complete and finalised.
General terms include a term loan as well as a revolving line of credit which will allow Iofina to fully pay current debt holders. The company noted that both parties are pushing to complete this transaction as soon as practically possible.
“We are pleased that we are now in the final documentation phase of debt refinancing and we look forward to updating the market as to its conclusion in due course”, Iofina president and chief executive Tom Becker said in a statement.
In a note on Wednesday, analysts at house broker finnCap retained their 32p price target on the firm, saying a “near-term conclusion to the debt refinancing will allow management and investors to focus again on the strong growth potential and fundamentals underpinning its core iodine business”, which they said had been largely unaffected by the coronaviurs pandemic.
The news sent the shares up 2.9% to 16p in mid-morning trading.
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