Intelligent Monitoring Group Limited (ASX:IMB) Secures $122.5M New Debt Facility with NAB
Debt Refinancing
Intelligent Monitoring Group Limited (IMG) has secured a new $122.5 million debt facility with National Australia Bank (NAB), replacing existing facilities. The new facility comprises a replacement term debt facility, a new acquisition facility, and a bank guarantee, effectively reducing IMG’s interest rate from 15% to approximately 7%. This refinancing is projected to decrease interest expenses by over $6.5 million per annum for IMG shareholders.
Balance Sheet Enhancement
The refinancing enhances IMG’s balance sheet firepower by up to $37.5 million, supplemented by existing cash on hand exceeding $20 million. This strengthened financial position will support additional EBITDA accretive acquisitions, contingent on their financial and strategic viability.
Executive Comments
Managing Director Dennison Hambling stated, “This is a significant milestone for IMG on its journey to becoming Australia’s premier security services business. With the current interest rate of 15% from the ADT acquisition facility reduced by more than half to an approximate rate of 7%, this will result in a significant (>$6.5m pa) reduction in interest expense for IMG’s shareholders and move IMG into line with other industrial companies of similar size and financial profile.”
Hambling added, “I would like to thank our debt advisors, NEU Capital and EMK Thomas, for their continued help and guidance in our journey, and also thank and acknowledge Tor Investment Management and Longreach Credit Investors for their financial support during the earlier ADT acquisition and settling-in process.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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