Tihama inks SAR 20 mln credit facilities agreement with Samba

Tihama Advertising and Public Relations Co. signed on Sunday, Nov. 15, credit facilities agreement with Samba Financial Group worth SAR 20 million as a maximum limit that can be used for several sub-limits.

The credit is granted by a deposit at Samba, the company said in a bourse statement, adding that the purpose of the financing was to restructure the company's financial obligations and provide non-cash facilities (guarantees and credits).

This approach by the company's management comes to restructure financial obligations as part of its strategy towards converting part of the short-term obligations into medium-term obligations to improve the operations of cash flows. Under this, part of the facility will be used to replace existing financing, which was paid in quarterly installments ending Dec. 15, 2021, and convert it to medium-term financing for two years.

In addition, the step comes to contribute to reducing the company's financial costs during the coming financial periods as the interest rate of the new financing obtained by the company is lower than the interest rates for the existing financing, the statement added, noting that there are no related parties in the agreement.