[Via Satellite 12-14-2015] UrtheCast’s wholly-owned Spanish subsidiary UrtheCast Imaging, also known as UrtheCast Spain, has obtained a senior secured term loan of 25 million euros ($27.5 million), from Banco de Sabadell. The loan has a five-year term and will accrue interest at the Euribor six-month rate (but no less than zero percent) +2.6 percent per annum.
Of the loan, 20 million euros ($22 million) will be used to reduce an inter-company loan UrtheCast provided to UrtheCast Spain in connection with the acquisition of Deimos Imaging from Elecnor in July 2015. The remaining proceeds of 5 million euros ($5.5 million) will be held on deposit with Sabadell as a new guarantee to replace an existing bank guarantee to Elecnor provided in connection with the acquisition. By replacing the prior guarantee, $5.5 million of restricted cash has been released, returning these funds to the company for general working capital purposes.
UrtheCast plans to repay $22 million of the loan in five equal payments on each anniversary date of the closing of the loan. The remaining $5.5 million will be payable at the end of the term using the funds held for the issuance of the new bank guarantee, which will expire prior to the maturity of the loan. Pre-payments will be permitted at UrtheCast Spain’s option, subject to a 1 percent pre-payment fee under certain circumstances.