adminmaturity of its existing debt facility with Consilium Investment Management to three years. Extending the term of the facility, which was due in less than 12 months, further strengthens the company’s balance sheet,” Cambria said.
The facility, which was due for repayment by March 8, 2014, would now only fall due on April 30, 2016, but other terms remain the same.
“The terms of the facility, which include an early prepayment option, remain unchanged and the extension has been secured with no additional cost. As previously disclosed on 10 December 2012, it carries a 15 percent annualised interest rate.”
Commenting on the development, Cambria’s Africa chief executive, Mr Edzo Wisman, said converting their short-term financing with Consilium into debt with the revised maturity date, marks the first time Cambria has been able to access long-term debt financing and increases the strength of its balance sheet .
Consilium, through the various funds it manages, is a substantial shareholder in Cambria, and the transaction is therefore deemed a related party transaction for the purpose of the AIM rules.
The directors, having consulted with WH Ireland, the company’s nominated advisor, consider the terms of the debt facility to be fair and reasonable insofar as its shareholders are concerned.
Consilium Investment Management in this restructuring represented the Consilium Corporate Recovery Master Fund and the Consilium Emerging Markets Absolute Return Master Fund.
The increased financing was meant to fund the entry of Cambria’s rapidly growing Millchem investment in Zambia, refinance the company’s existing debt obligations, as well as for general working capital.
Millchem, a wholly owned subsidiary of Cambria, is a value-added chemicals distributor with substantial reach and a leading market position in Zimbabwe.
Cambria holds 61 percent of ex-Zimbabwe Stock Exchange-listed Celsys, 100 percent shareholding in the following: chemicals distributor Millchem, IT services provider CES, four-star hotel Leopard Rock, electronic data interchange service provider PayServ.
It recently sold its stake in ForgetMeNot Africa. Consolidated revenue and gross profit of Cambria’s four main investments was US$6,5 million and US$3,6 million during the period under review, compared to US$5,7 and US$3,4 million last year, representing an increase of 14 percent and 5,3 percent, respectively.
Cambria’s operating loss for the period under review was US$1,8 million, compared to US$15,1 million for the equivalent period last year, a considerable decrease of 88 percent.
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