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5G NETWORKS LIMITED. — Capital/Financing Update 2021
Jun 20, 2021
64261_rns_2021-06-20_0d1ca7d7-bca5-4969-a21b-a35440cd0e13.pdf
Capital/Financing Update
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Webcentral Group Limited (ASX: WCG) Approval of $16.6 Million Debt Facility with Commonwealth Bank and loan repayment to 5G Networks
ASX Announcement 21 June 2021
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Webcentral is pleased to announce that it has received Credit Approval for a $16.6 million Debt Facility from Commonwealth Bank of Australia (“ CBA ”).
The net proceeds of the Debt Facility will be utilised to partially repay the loan from 5G Networks Limited, the current balance being approximately $41 million.
The Debt Facility consists of a $15 million Market Rate Loan Facility, a $1.5 million Bank Guarantee Facility and a $0.1 million Credit Card Facility.
The Debt Facility will also reduce the total borrowing costs of Webcentral with the expected interest rate margin of 4.25%, approximately 0.7% lower than the margin charged on the 5G Networks loan.
Joe Demase, Managing Director said:
“The CBA Debt Facility recognises the significant improvement to Webcentral’s financial position since 5G Networks took control of Webcentral in October 2020, including the return to profitability, strong operating cashflow performance and the strength of the Webcentral business.
The Debt Facility will allow Webcentral to repay a significant portion of the 5G Networks loan and will reduce Webcentral’s borrowing costs.”
Webcentral was advised by EMK Thomas Capital and Advisory in relation to the Debt Facility.
ENDS.
The key terms of the Debt Facility are as follows:
Term (Market Rate Loan Facility) 3 years Interest rate margin over BBSY 4.25% Financial Covenants Leverage and Interest Rate Cover Security First ranking General Security Interest
All other terms and conditions are typical for a facility of this size and term.
Formal loan documentation is expected to be executed and the first drawdown made by 30 June 2021.
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www.webcentralgroup.com.au [email protected] ABN 21 073 716 793
Level 7, 505 Little Collins St, Melbourne VIC 3000 P: 02 9215 6300
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About Webcentral Group
Webcentral is an Australian owned digital services company who empower more than 330,000 SMB customers to grow and thrive in the online world. Our portfolio of digital services is extensive, with market leading offers across domain management, website development and hosting, office and productivity applications and online marketing.
Our customer focussed heritage has been built on expertise, innovation and personalised service; critical attributes delivered through our culture and embraced by our people. This is demonstrated through more than 25 years of online industry leadership across Australia’s digital foundation brands such as Melbourne IT, Netregistry and WME.
The Webcentral mission is therefore dedicated to leading online success for our customers. We achieve this by building trusted and valued client relationships which enjoy successful business results at each milestone across the customers’ digital journey.
For further information contact:
Joe Demase Managing Director [email protected] 1300 10 11 12
Glen Dymond Chief Financial Officer [email protected] 0408 199 712
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www.webcentralgroup.com.au [email protected] ABN 21 073 716 793
Level 7, 505 Little Collins St, Melbourne VIC 3000 P: 02 9215 6300