Ondo InsurTech PLC on Monday said it has restructured vendor loan notes issued to its largest shareholder, HomeServe Assistance Ltd, a Walsall, England-based multinational specialising in home emergency repairs and improvements. The loan notes were originally issued as part of Ondo InsurTech’s 2022 acquisition of the LeakBot business.
Shares in Ondo InsurTech were down 3.8% to 29.35 pence each in London on Monday morning.
The London-based claims prevention technology company for home insurers said the restructuring includes extending the loan note maturity date by one year to March 31, 2030. Principal repayments will now begin on March 31, 2027, instead of 2026, with the interest roll-up period extended by an additional year to March 31, 2026.
The interest rate remains at 12% until March 2027, after which it will rise to 14%. The loans remain redeemable by Ondo InsurTech by refinancing or repayment with 10 days’ notice.
Ondo InsurTech has committed to allocate at least 40% of proceeds from any exercised warrants to repaying the loan notes. Currently, 26.94 million HomeServe warrants remain outstanding, representing a potential subscription value of £6.0 million.
Chair Mark Wood said: ‘The rescheduling of our vendor loan notes has been structured to enable us to meet our obligations to the loan note holders from future trading revenues.’
In the same announcement, Wood reiterated Ondo InsurTech’s pledge to be earnings before interest, taxes, depreciation, and amortisation positive in the second-half of next year without the need for further working capital funding.
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