Oliver's Real Food announces debt facility amendment

Oliver's Real Food Limited (ASX:OLI) has announced an agreement with its principal lenders to amend its debt facilities. The company has also secured an additional $1.4 million unsecured debt facility, providing a twelve-month interest moratorium on all $4.91 million unsecured debt, backdated to 1st July 2024, and extending the maturity and repayment schedules of the secured loan and line facilities.

Executive commentary on debt facility amendment and additional funding

The combination of these transactions is designed to provide Oliver's with the liquidity needed to enable management to concentrate on growing the business.

Summary of Oliver's Real Food debt facility amendment and outlook

Oliver's Real Food Limited (ASX:OLI) has successfully amended its debt facilities and secured an additional $1.4 million unsecured debt facility. The amendment includes a twelve-month interest moratorium on all $4.91 million unsecured debt, backdated to 1st July 2024, providing an additional $358k in working capital. The company has also extended by 12 months the maturity and repayment schedules of the secured loan and line facilities. Additionally, an unsecured debt facility of $1.4 million has been provided by Michael Gregg, with the lender agreeing, subject to shareholder approval, to convert the facility into equity at $0.014 per share, which is a premium to the current share price. The Board intends to add the resolution to the Annual General Meeting in late November 2024. The company aims to use these transactions to concentrate on growing the business and ensure liquidity for its management. Shareholders' approval will determine the impact on equity of the proposed debt to equity conversion.