Pro-Pac Packaging Limited (ASX:PPG) Enters Short-Term Loan Facility
Loan Facility Announcement
Pro-Pac Packaging Limited (ASX:PPG) has announced a short-term loan facility with its major shareholder, Bennamon Pty Ltd, and related entities. This arrangement allows the company access to loans up to A$13 million for its operations in Australia and New Zealand while it seeks longer-term funding solutions.
Terms of the Agreement
The loan availability extends until 15 February 2025, with repayment expected by 31 March 2025, although this deadline may be extended to 30 June 2025 by mutual agreement. The facility features a market-based interest rate, and there are no fees related to unused loan commitments, which can be cancelled at any time without further cost.
Executive Comments
Executive Chairman John Cerini stated, “We are pleased to have the ongoing support of our major shareholder, and the provision of this facility is a fundamental example of that support. While this facility is a short-term option, we will be continuing to work with our advisors, our major shareholder, and financiers over the coming months on a number of longer-term options to ensure sufficient funding arrangements are in place to support the business.”
Future Outlook
With consent from existing financiers under their finance agreements, Pro-Pac Packaging continues to explore various funding options. The decision aims to bolster the company’s financial stability as it navigates through this transitional period.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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