Redstone secures financing to bolster future


Redstone secures financing to bolster future

Microscope contributor

Redstone has secured £6m of financing to enable it to revise some of its debt repayment schedules and help secure the future of the business. 

One of the pressing issues the company faced was to resolve its loan agreement with Eckoh connected to the Symphony Telecom acquisition and it has now reached a standstill agreement. 

Under the terms of that agreement £1.7m will be replayed on 1 October 2011 and £1.7m to be paid at the same time a year later. 

The £6m loan note, from investors SVG Investment Managers and Gartmore Investment, will be used to "provide funds for general working capital purposes and to strengthen the Group's balance sheet". 

Redstone has also amended the debt facilities it has with Barclays that has tightened the restrictions over incurring additional debts. 

"I am pleased that the Group has been able to successfully refinance the business so that it will be able to continue to trade and build upon its strengths," said Alan Coppin, chairman of Redstone. 

"During the last four months, the business has been refocused as an ICT business with the sale of the Telecoms division to Daisy Group and the awarding of the Birmingham BSF contract," he added.

"This refocusing of the Group, coupled with the refinancing will, in the opinion of the Board, enable the Group to move forward and become a major player in the ICT sector," said Coppin.

Redstone has been the subject of potential buyers but the refinancing will change the landscape.

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