So now we can reveal details of the confidential agreement that "saved" Firstport from administration?
Equistone Private Equity put £81.7m into the ailing company. They did this by taking a majority share holding in the company.
However strings are attached, and they are very expensive strings?
A loan agreement has been entered into between Equistone and Firstport expiring in 2025.
The terms of the loan are £12.1m at an intertest rate of 2.75% above Libor, £62.1m at an interst rate of 6.5% above Libor and a further £7.5m revolving credit at an interest rate of 2.75% above Libor.
In the year ending December 2019,Firstport paid £5,597,000 in interest charges including loan arrangement fees.
That is £5,957,000 that Firstport have to find before making a penny for themselves and £5,957,000 that can only come from residents pockets.
