Accident management firm Accident Exchange has struck a debt-for-equity deal which cuts its debt liability by £50m.
The £50m liability, which was in the form of convertible loan notes and was due for payment at the end of 2013, has been erased by the deal, which was unanimously approved by shareholders at the company’s extraordinary general meeting yesterday.
Separately, Accident Exchange has entered into a new three-year credit agreement with its senior lender Morgan Stanley, under which the bank will extend £43m of working capital facilities to Accident Exchange until December 2013.
“Both deals materially strengthen the balance sheet,” said Steve Evans, chief executive of Accident Exchange, in a statement. “It gives us a significant financial footing to continue the consolidation and development of our services to the 1,300 dealer, bodyshop and manufacturer clients we currently support.”
Source: Insurance Times
