xReality Group Limited (ASX:XRG) Executes Debt Refinancing Term Sheet
Debt Refinancing Agreement
xReality Group Limited has entered into a binding term sheet with Causeway Asset Management to refinance its existing debt facilities exclusively. The agreement is subject to due diligence, final documentation, and Board approval, targeted for 3 April 2025.
Key Terms
The refinancing includes a $6 million facility with an initial drawdown of $5 million and an additional $1 million for working capital. The new facility will repay the existing $4.6 million loan in full and includes a maturity date of March 2027, interest payable quarterly, and standard covenants. Additionally, 5,000,000 XRG warrants will be issued with a 20% premium to the 30-day VWAP at initial drawdown. Each warrant can be exercised for one ordinary share and expires in 36 months.
Financial Impact
The new facility eliminates all near-term financial obligations, provides financial flexibility, and supports the company’s Operator XR growth strategy. The refinancing reduces overall debt by 48%, resulting in a stable debt position with improved gearing.
Executive Comments
Wayne Jones, CEO of XRG, said, “We are pleased to have agreed key terms for the refinancing of our debt facilities with Causeway. This transaction, once complete, will position us strongly for the next phase of growth.” Jones added, “The new facility marks the end of the debt restructure phase for XRG, including the conversion of the Birkdale loan, our overall debt being reduced by 48% and, with the new facility in place, the company will have a stable debt position with substantially improved gearing.”
Motley Fool contributor Aaron Shaw 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 no position in any of the stocks mentioned. 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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