Page 71 - Stellar IAR2015

5. LOANS TO PORTFOLIO COMPANIESR’000Integrated Equipment Rentals (Pty) LtdInitial facilityThe loan is secured by a cession in securitatem debiti of the book debts and bank accounts and a shareholder guarantee and cession in securitatem debiti of all shares in IE Rentals not held by the Company. The value of the security held is considered to cover the initial facility and the drawdown facility. Interest and capital is repaid monthly. The loan is to be fully repaid on or before 31 May 2020.Integrated Equipment Rentals (Pty) LtdDrawdown facilityIn addition to the initial loan advanced above, a drawdown agreement is in place, which holds the same security as the initial facility. The value of the security held is considered to cover the initial facility and the drawdown facility. Interest is serviced monthly with capital repayments being made as available cash allows. The total facility available is R25 million as at the reporting and was increased to R50 million on22 February 2016. Each drawdown is repayable within70 months from the advance date. The average remaining term of all drawdowns is 69 months.Mine Restoration Investments LtdThe loan is secured by subordination of Iron MineralBene ciation Services (Pty) Ltd shareholder loans andshareholder guarantees to the value of R9.7 million and by a cession and pledge of 100% MRI shareholding of and claims against its wholly-owned subsidiary. Subsequent to year end,the loan terms were amended. With e ect from 1 January 2016 the interest rate was increased to prime plus 6%. Interest accruing up until 31 December 2015 is capitalised to the loan and is only repayable on 31 March 2016. Interest accruing from 1 January to 31 March 2016 on capital of R9.5 million is repayable monthly in arrears. Remaining interest and capital is repayable on31 March 2016.Praxis Financial Services (Pty) LtdThe loan is secured by cession of book debts, bank accounts and intellectual property and software, a pledge of shares in Praxis and a subordination of shareholder claims against Praxis. The value of the security held provides a 100% cover ratio. Interest is serviced monthly. The loan terms were amended with e ect from 1 January 2016 as follows: interest rate was reduced to prime plus 8%; and the loan became repayable in three bullet payments of R12 million on 31 December 2016, R12 million on 31 December 2017 and the remaining balance on 31 December 2018.Short term portion of loans to portfolio companies Long term portion of loans to portfolio companiesInterest Rate18% per annumPrime + 5%Group and Company 2014--20157 37216 04511 55640 00074 97355 995 18 97874 973Prime + 2%--20% per annum-- - -STELLAR CAPITAL PARTNERS | 67