Tern plc (LSE:TERN) has agreed to extend the repayment deadline on its existing loan facility to 11 September 2026, providing additional financial flexibility as the company continues to support its portfolio of early-stage Internet of Things investments.
The revised agreement with the lender is designed to ease near-term balance sheet pressure and allow the board more time to negotiate future funding arrangements for its portfolio companies.
Under the updated terms, Tern will make a partial repayment covering principal and interest of £38,432.88, alongside a £6,000 fee for the extension. Following this payment, £120,000 will remain outstanding on the facility, which carries an interest rate of 1.00% per calendar month until maturity.
The company said the extension forms part of its ongoing efforts to manage financing costs while maintaining liquidity to meet the funding requirements of its investee businesses. Maintaining flexibility in its capital structure is considered important given the growth-stage nature of the companies within its investment portfolio.
Despite the improved funding flexibility, the group’s broader outlook remains constrained by weak financial metrics. Recent performance has been affected by a sharp fall in revenue, continued losses and negative operating and free cash flow. Technical indicators also suggest the shares remain in a prolonged downtrend, although some signals point to potential stabilisation at oversold levels. Valuation remains difficult to assess due to negative earnings and the absence of dividend yield data.
More about Tern plc
Tern plc is an investment company specialising in high-growth, early-stage technology businesses operating in the Internet of Things sector. Listed on AIM under the ticker TERN, the company provides capital and strategic support to portfolio firms developing innovative IoT solutions, with a focus on businesses that require further funding to scale within this rapidly evolving technology market.
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