Reach4entertainment said it has received an offer letter for a new three-year, secured asset-based debt facility of up to £9.5 million ($14.4 million) with PNC Business Credit to be used to refinance a loan with AIB and provide the company with working capital.

The proposed new facility will be made up of a cash flow term facility of £1M ($1.5 million) and a revolving credit facility of up to £8.5 million ($12.9 million) based on qualifying accounts receivable.

The board of r4e expects that initial funds available for drawdown under the revolving credit facility will be approximately £6 million ($9.1 million), depending on accounts receivable at the time.

PNC’s provision of the proposed new facility will be subject to agreement of legal documentation and the satisfaction of certain conditions precedent, including the condition for r4e to raise a minimum of £3.5 million ($5.3 million) of new equity capital.