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(Sharecast News) - Infrastructure company Digital 9 Infrastructure announced a significant step towards strengthening its financial position on Monday, with the receipt of a deferred consideration payment of $25m (20m) related to the sale of the Verne Global group, as announced on 15 March.
The London-listed firm said it had earmarked 23m from the initial purchase price proceeds for certain indemnification provisions associated with the Verne transaction.
With the cessation of those indemnification provisions, the company said it now intended to undertake a total additional repayment and partial cancellation of its revolving credit facility (RCF) amounting to about 47m, on 3 May.
The repayment would also include funds released from the interest reserve due to the repayment, leading to a reduced drawn amount.
As a result, the outstanding drawn amount was expected to decrease to 53m, compared to 373.8m in March.
The board said it anticipated that the substantial reduction would lead to a net interest expense saving of about 28m until the end of the facility's term, this facilitating significant balance sheet deleveraging following the completion of the Verne transaction.
At 0811 BST, shares in Digital 9 Infrastructure were up 4.19% at 22.09p.
Reporting by Josh White for Sharecast.com.
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