Ondo InsurTech agrees Loan Note restructuring to support rapid growth.
Ondo InsurTech Plc (“Ondo“), the London-listed leader in claims prevention technology for home insurers, is pleased to announce that it has agreed a restructuring of its 5-year loan notes with its largest shareholder, Homeserve Assistance Limited (“Homeserve”), providing additional non-dilutive financing flexibility for continued rapid roll-out of the LeakBot system.
These loan notes, which are interest-free until 21 March 2024 form part of the consideration for the acquisition of the Leakbot business from Homeserve as set out in the prospectus dated 21 March 2022.
The key elements of this restructuring are:
· Interest due from 31 March 2024 to 31 March 2025 rolled up and deferred.
· First repayment of principal deferred from 31 March 2025 to 31 March 2026
· Final redemption extended by 1 year to 31 March 2029
· Interest rate increased from 10% to 12% from 31 March 2024
The loan notes remain redeemable by Ondo by refinancing or repayment with 10 days’ notice.
Another little job done. Our Loan Note with our largest shareholder is interest free until March 2024, but these improved terms give us greater flexibility as scale the business- very helpful #ONDO https://t.co/RLlEdE2I1H
— Craig Foster (@foster_ideas) July 11, 2023
Craig Foster, CEO of Ondo InsurTech Plc, says: “The financial flexibility provided by these terms granted by our largest shareholder supports our accelerated drive to profitability as we initiate contract roll-outs in Denmark, Sweden, the UK and the USA.”
