Businessman Dermot Desmond has extended the term of €10 million of Datalex facilities but hiked interest rates. Mandatory Credit ©INPHO/Morgan TreacyDatalex, the airline travel retail software provider to airlines, said on Tuesday that a company owned by major shareholder Dermot Desmond has agreed to extend repayments on a €10 million loan facility by 18 months to the end of next year.
However, the interest rate on loans drawn down on the facility, currently amounting to €9 million, has been increased from 10 per cent a year to 15.5 per cent with immediate effect and will ultimately rise to 18 per cent from October, Datalex said in a statement. Debt drawn down from the facility from Mr Desmond’s Tireragh vehicle was originally due to be repaid in late 2021, but the term was subsequently extended. Mr Desmond’s IIU Nominees company also owns 40.5 per cent of Datalex.
Datalex, led by chief executive Sean Corkery, said that it has engaged financial advisers to “to explore further fundraising options to secure capital to repay the debt facility and support the expansion of the business as it returns to positive cash flow generation and further builds out its global customer base”.