Vodafone bails out Outsourcery with £4m loan

Vodafone bails out Outsourcery with £4m loan

Vodafone Group has offered cloud computing company Outsoucery a cash injection of £4m.

The refinancing deal will enable Outsourcery to support its requirements and pay investors, explaining it will allow ‘further alignment with major strategic partner Vodafone’.

The company has granted Vodafone a warrant for 3m Outsourcery shares, at 30p each, accessible within 42 and 54 months after the deal.

Piers Linney, Co-CEO of Outsourcery, said the new loan will be combined with an extended £1m loan agreement with Etive to ‘pursue a pipeline of opportunities’.

He said: ‘Vodafone Group is a key strategic partner for Outsourcery and we are pleased to be deepening our relationship. Together with our extended loan from Etive, we will benefit from a reduced cost of capital, and have greater flexibility to pursue our growing pipeline of opportunities with enterprise customers and the public sector.’

Vodafone’s intervention will replace Outsourcery’s existing agreements with Barclays Bank, which include a £1.4m loan facility and £0.3m mortgage facility.

Repayments on the loan will start in year two and will spread over 12 quarterly periods, with Vodafone charging an annual interest rate of 7.5%.

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