Banqup Group Secures an Additional €4M in Funding from Francisco Partners
On July 13, Banqup Group announced that it had secured an additional €4 million in funding from Francisco Partners, one of its senior creditors. This extra funding aims to bolster the group's liquidity amid its ongoing strategic review process.
Additional Financing to Support Cash Flow
The group has entered into an additional loan agreement (Incremental Facility) with funds affiliated with Francisco Partners as part of its Senior Facilities Agreement dated March 2022. This new €4 million loan supplements the existing Facility A, providing the group with increased financial flexibility to maintain liquidity pending the completion of the previously announced strategic process. The board of directors has also approved the possibility of additional disbursements totaling up to €10 million, including the amount described above. These new credits would remain subject to the approval of Francisco Partners and the conditions of the existing agreement.
Adjusted Terms and Revised Financing Costs
In return for the new loan, the group and its creditors have agreed on several modifications to the terms of the financing. The PIK interest rate applicable to Facility A and the CAF facility has been increased from 8.00% to 10.50% per annum. An issuance premium fee of 3.00% is added to the amounts drawn under the Incremental Facility, and an early repayment premium of 5.00% now applies to amounts repaid or previously repaid under Facility A and/or the CAF facility.
