- Reach4entertainment has received an offer letter for a new three-year, secured-asset-based debt facility of up to £9.5m with PNC Business Credit (PNC) to be used to refinance the AIB loan and provide the Company with working capital.

PNC is a trading name of PNC Financial Services UK Ltd, ultimately a wholly owned subsidiary of PNC Bank National Association, one of the largest financial institutions in the United States.

The Proposed New Facility will be made up of a cash flow term facility of £1m and a revolving credit facility of up to £8.5m based on qualifying accounts receivable.

The Board of r4e expect that initial funds available for drawdown under the revolving credit facility will be approximately £6m, depending on accounts receivable at the time.

PNC's provision of the Proposed New Facility will be subject to agreement of legal documentation and the satisfaction of certain conditions precedent, including the condition for r4e to raise a minimum of £3.5m of new equity capital.

On satisfaction of these conditions, the Board of r4e expect that r4e will be able to satisfy the cash repayment required under the AIB Agreement. The Company is already in discussions to raise new equity capital and further updates will be announced in due course.

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