Bango Secures New Loan and Revolving Credit Facility
Why we think this is good
The new loan agreement and revolving credit facility provide Bango with additional cash and financial flexibility, which is a positive development. The terms of the loan, including the interest rate and repayment schedule, appear reasonable. While there is some dilution from the warrants granted to the lender, the overall financing arrangement should strengthen Bango's balance sheet and support its future growth plans.
Key Points
- Bango secures new 3.9B KRW (c.$2.85M) loan from NHN Corporation
- Remaining 5 capital repayments (6.5B KRW or c. $4.75M) of existing loan deferred
- New loan and existing loan to carry 7% fixed annual interest rate
- NHN granted 2,048,319 5-year warrants to purchase Bango shares at 80p each
- New $15M multi-currency Revolving Credit Facility secured with NatWest
Summary
Bango has entered into a new loan agreement with NHN Corporation to extend and replace an existing loan. The new loan provides an additional 3.9B KRW (c.$2.85M) cash to be used to strengthen the balance sheet and provide further flexibility. The remaining 5 capital repayments (6.5B KRW or c. $4.75M) of the existing loan will be deferred and repaid over 8 equal quarterly instalments starting in December 2026. The new loan and existing loan will carry a fixed annual interest rate of 7%. In connection with the new loan, NHN has been granted 2,048,319 5-year warrants to purchase new ordinary shares in Bango at 80p each, which would equate to a 2.6% dilution of the current issued share capital. Bango has also secured a new $15M multi-currency Revolving Credit Facility with NatWest, replacing the existing £3M overdraft.