UrtheCast announced its wholly-owned Spanish subsidiary, UrtheCast Imaging (UrtheCast Spain) has obtained a senior secured term loan of €25 million ($27.5 million) from Banco de Sabadell. The loan has a five year term and will accrue interest at the EURIBOR 6 month rate + 2.6% per annum.

Of the loan, €20 million ($22 million) will be used to reduce an inter-company loan made by UrtheCast to UrtheCast Spain in connection with the acquisition of Deimos Imaging from Elecnor in July 2015. The remaining proceeds of €5 million ($5.5 million) will be held on deposit with Sabadell as a new guarantee to replace an existing bank guarantee to Elecnor provided in connection with the acquisition. By replacing the prior guarantee, €5 million ($5.5 million) of restricted cash has been released, returning these funds to the company for general working capital purposes.

UrtheCast’s CEO Wade Larson commented: “We are very pleased to have closed this new term loan. We believe this new capital is a strong endorsement of the company and its financial outlook. The refinancing provides the company with substantial financial resources in support of the company’s operations and growth initiatives.”

The loan is secured by certain assets of UrtheCast’s wholly-owned foreign subsidiaries. Repayment of $22 million of the loan will be made in five equal payments on each anniversary date of the closing of the loan. The remaining $5.5 million will be payable at the end of the term using the funds held for the issuance of the new bank guarantee, which will expire prior to the maturity of the loan. Pre-payments will be permitted at UrtheCast Spain’s option, subject to a 1% pre-payment fee under certain circumstances.

Vancouver-based UrtheCast is a technology company that has developed the world’s first Ultra HD video feed of Earth, streamed from space in full color.