Arricano Real Estate PLC EBRD Loan Facility (7461Q)
02 December 2016 - 2:59AM
UK Regulatory
TIDMARO
RNS Number : 7461Q
Arricano Real Estate PLC
01 December 2016
1 December 2016
Arricano Real Estate Plc
("Arricano" or the "Company")
EBRD Loan Facility
Arricano (AIM: ARO), a leading real estate developer and
shopping mall operator in Ukraine, provides the following update
relating to its current loan facilities with the European Bank for
Reconstruction and Development (the "EBRD").
As detailed in the Company's interim results announced on 27
September 2016, the Group and the EBRD have agreed indicative terms
for the restructuring of certain loans payable to the EBRD. The
Group indicated at the time of the interims that amended loan
agreements had not yet been signed but were expected by management
to be executed in the coming months.
Ukrpangroup PrJSC, a subsidiary of the Company which owns and
operates the Kryvyi Rih Shopping Center "Sun Gallery" ("Kryvyi
Rih") and Grandinvest PrJSC, a subsidiary of the Company which owns
and operates Simferopol Shopping Center "South Gallery"
("Simferopol"), have now entered into an amendment and restatement
deed (the "Amendment Deed") relating to the loan agreement dated 27
March 2008 as amended and restated thereafter (the "Loan
Agreement") and a transfer agreement (the "Transfer Agreement")
with the EBRD to release Simferopol from its loan of US$3.7 million
by transferring the loan to Kryvyi Rih and to restructure the
repayment terms of the Kryvyi Rih loan.
These amendments have been agreed as a result of the situation
in Crimea where Simferopol is located and reflects the EU/United
States sanctions and payment restrictions. The Amendment Deed and
Transfer Agreement will result in:
- The transfer of Simferopol's existing loan from the EBRD of
US$3.7 million to Kryvyi Rih. Following this transfer the total
outstanding amount owed to the EBRD by Kryvyi Rih will be US$8.8
million.
- Increasing the interest rate margin applicable to the loan from 6.5% to 8% per annum.
- Arricano will execute the respective deed of guarantee and
indemnity in order to guarantee the repayment of the loan by Kryvyi
Rih in addition to existing guarantees and security issued by other
parties.
The Transfer Agreement will take effect and the Loan Agreement
shall be amended and restated in a form as set out in the schedule
to the Amendment Deed from the effective date which will be the
date that the EBRD notifies Ukrpangroup PrJSC and Grandinvest PrJSC
provided that conditions precedent specified in the Amendment Deed
have been satisfied or waived, in whole or in part, to the
satisfaction of the EBRD (the "Effective Date"). The Effective Date
must occur by the earlier of 60 calendar days after the
registration of the Amendment Deed with the National Bank of
Ukraine or the date falling 100 calendar days after the date of the
Amendment Deed or by such later date as the EBRD may agree in
writing.
A further announcement will be made when appropriate.
Mykhailo Merkulov, CEO of Arricano, said, "This transfer between
subsidiaries was necessary due to the changes in Crimea and will
make future loan servicing more straightforward. It also continues
our long-standing partnership with the EBRD and we are confident
that it is an agreement that benefits all parties.
Overall, this is an encouraging period for Arricano, as our
recent interim results demonstrated recording a significant rise in
profitability helped by an improving backdrop across the Ukraine
with GDP in 2016 forecast to increase by 1.5% reversing a negative
trend in previous years."
For further information, please contact:
Arricano Real Estate plc
Mykhailo Merkulov Tel: +380 44 569 6708
Nominated Adviser and Joint Broker
Smith & Williamson Corporate Finance Limited
Azhic Basirov Tel: +44 (0)20 7131 4000
Joint Broker
Whitman Howard Limited
Ranald McGregor-Smith Tel: +44 (0)20 7659 1234
Financial PR
Novella
Tim Robertson/Toby Andrews Tel: +44(0)20 3151 7008
This information is provided by RNS
The company news service from the London Stock Exchange
END
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