Telecommunications investment company Huge Group has secured new debt financing from Rand Merchant Bank, in the process refinancing existing debt and giving the firm additional ammunition for acquisitions.
Huge Group, which was unsuccessful in its bid last year to buy now-delisted software services company Adapt IT, said late on Monday that the refinancing agreement with RMB follows its R200-million term facility agreement signed in December 2018 with Futuregrowth Asset Management.
That Futuregrowth facility was repayable by December 2023 in quarterly tranches of R14-million.
Huge subsidiary Huge Technologies also secured a facility agreement with Futuregrowth, in November 2017, worth R30-million, which was repayable this month (May 2022).
“The RMB term facilities will be utilised to repay loans outstanding on the R200-million facility and the R30-million facility of R151.2-million. The Futuregrowth Facilities will be settled on 31 May 2022,” Huge Group said in a statement to shareholders.
“On a comparable basis, the quarterly cash outflows attributable to the RMB term facilities are substantially less than the quarterly cash outflows attributable to the R200-million facility,” it said, without providing details.
“The balance of the RMB term facility will be used to fund a number of investments on which Huge has been engaging and which it is desirous of making,” the company said.
On Monday, Huge Group said that it had acquired a minority stake in Glovent Solutions for an undisclosed sum. – © 2022 NewsCentral Media
