LONDON, Jan. 8, 2021
LONDON, Jan. 8, 2021 /PRNewswire/ -- VivoPower International PLC (NASDAQ: VVPR) (the "Company"), is pleased to announce it has refinanced its debt with its major shareholder AWN Holdings Limited ("AWN").
The loan's current outstanding principal of US$23.3 million, which was due to be repaid in full by March 31, 2022, shall now carry a new maturity date of June 30, 2026. An initial principal payment of US$2.19 million shall be paid within fourteen days of document execution followed by sixty equal monthly principal installments commencing July 1, 2021.
The effective interest rate on the loan will be reduced from 12% to 8.8% per annum.
VivoPower's Audit and Risk Committee chairman, William Langdon, commented: "The independent directors of VivoPower are pleased to have reached agreement with the independent directors of AWN in relation to the new terms of the shareholder loan. These terms reflect the improved credit profile of VivoPower as well as AWN's long-term commitment to supporting the transformational growth of VivoPower. We believe that it will also reduce the interest costs of VivoPower and enable the Company to undertake the necessary investment to scale up its sustainable energy solution (SES) business, incorporating Tembo electric vehicles to meet customer demand."
VivoPower is an international battery technology, electric vehicle, solar and critical power services company whose core purpose is to deliver sustainable energy solutions to its customers. VivoPower is a certified B Corporation and has operations in Australia, Canada, the United States and the United Kingdom.