Much to the delight of its shareholders, the Donaco International Ltd (ASX: DNA) share price has been a big mover during trade today.
In late trade the casino operator's shares are up over 4% to 50.5 cents.
What happened?
This morning Donaco announced that it has signed binding agreements with Mega International Commercial Bank to refinance its current term loan facility.
The company has repaid a total of US$63.4 million in the past two years, with the remaining principal amount of the current facility standing at US$56.6 million.
The refinance agreement with Mega Bank today will be for a new facility of US$57 million, with the term extended for three years from the date of drawdown.
The market appears to have responded positively to the news due to the interest rate being reduced slightly to the LIBOR six-month rate plus 6%.
Furthermore, a number of covenants controlling capital management (dividends and buybacks) have been relaxed.
