The board of Digital 9 Infrastructure (DGI9) has provided a progress update on the closing conditions required for the sale of the Verne Global group of companies, a transaction that is key to repaying DGI9’s revolving credit facility (RCF).

The board notes that the RCF lenders have granted their approval to proceed with the completion of the Verne Transaction, and that lenders under the debt facility in respect of the Icelandic branch of Verne Global granted conditional consent to the change of control. In effect this means that the closing of the Verne Transaction is now conditional on receiving approval from the relevant regulators, specifically on applicable merger control approval in Iceland and on Foreign Direct Investment approval in Finland.

DGI9 has also entered into an amendment letter regarding the RCF terms which defines the range of the anticipated RCF repayment following completion of the Verne Transaction (excluding receipt of the potential earn-out payment). The result of this amendment will be an interest rate expense saving of c.£25m, and group debt in aggregate between £250m and £260m. The Verne Transaction’s closing will enable DGI9 to accelerate its balance sheet deleveraging and deliver the cash resources necessary for DGI9 and group to strengthen their position.