The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is up more than 2% after the company revealed another major debt repayment.
This company has two divisions, defence (weapon) systems and space systems. For example, its space technologies segment specialises in optical sensors and effectors to detect, track and characterise objects in space.
Debt repaid
The business revealed it had completed a debt repayment of $20.5 million on schedule.
This repayment follows the $26.9 million in September 2023 under a separate 12-month working capital facility.
This means the ASX share has now repaid, on schedule, half of the principal amounts originally due to Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and 100% of the working capital facility amounts, with the only outstanding amount relating to a term loan facility. Improving the balance sheet is good news for the EOS share price.
Remaining debt
The remaining term loan with Washington H. Soul Pattinson is $35 million, which had a term of 36 months (three years), with a maturity of 11 October 2025, with a total rate of 26%, needing a total repayment of $52.1 million.
The $52.1 million repayment for the term loan facility includes the principal amount, establishment fees and interest accrued to date.
In addition to the above repayment due in October 2025, EOS is required to pay interest each month, totalling approximately $19 million over the remaining term of the debt. The borrowing facility agreements include a 100% ‘make whole’ clause which applies in the case of any early repayment.
Recent solid growth
The business recently reported its result for the 12 months to December 2023 which showed an increase in revenue from continuing operations of 59% to $219.3 million, with strong growth by segments.
At 31 December 2023, the company had a backlog of contracted future work of over $600 million, including $181 million of conditional contracts.
EOS said it continues to pursue a number of material opportunities in different markets, including Europe, the Middle East and other international markets.
The EOS share price is up 190% in the last year, but it’s down more than 80% from January 2020.
