Refinancing of bank debt
03 November 2009 - 6:00PM
UK Regulatory
TIDMATH
RNS Number : 8179B
ATH Resources plc
03 November 2009
+------------------------------------+----------------------------------------+
| Press Release | 3 November 2009 |
+------------------------------------+----------------------------------------+
ATH Resources plc
("ATH Resources" or "the Group")
Refinancing of bank debt
ATH Resources plc ("the Group" or "ATH"), one of the UK's largest coal
producers, is pleased to announce the completion of the refinancing of the
Group's banking arrangements.
The Group has agreed a new GBP30 million revolving credit facility ("RCF") in a
club deal with HSBC and Yorkshire Bank. The RCF comes into effect
immediately and extends for a three year period ending in November 2012. Maximum
permitted borrowings under the RCF are GBP30 million during the first year of
the new arrangements, GBP27.5 million during the second year and GBP22.5 million
during the final year.
The new arrangements secure attractive, long term funding for the Group and
provide a more appropriate capital structure and the financial resources to
continue developing surface mining and coal recovery projects within the UK. The
RCF replaces the Group's existing term debt arrangements, which were due to
expire in February 2011, and working capital facilities. The combined
outstanding balances under the previous arrangements totalled GBP20 million at 4
October 2009, the Group's most recent financial year-end.
Commenting on the new banking arrangements, Tom Allchurch, Chief Executive of
ATH Resources, said "I am delighted that we have been able to secure attractive,
long term debt funding for the Group. The new facility provides ATH Resources
with greater flexibility and the capacity to fund future projects. We are very
pleased to be working with HSBC and Yorkshire Bank, both of whom know
ATH Resources well and have been very supportive in developing these new
financing arrangements. I look forward to nurturing a strong partnership with
both banks through the next period of ATH Resources' development."
-Ends-
For further information:
+-------------------------------------------+--------------------------------+
| ATH Resources plc | |
+-------------------------------------------+--------------------------------+
| Tom Allchurch, Chief Executive | Tel: +44 (0) 1302 760 462 |
+-------------------------------------------+--------------------------------+
| tom.allchurch@ath.co.uk | www.ath.co.uk |
+-------------------------------------------+--------------------------------+
+-------------------------------------------+---------------------------------+
| Evolution Securities Limited | |
+-------------------------------------------+---------------------------------+
| Joanne Lake / Peter Steel | Tel: +44 (0)113 243 1619 |
+-------------------------------------------+---------------------------------+
| joanne.lake@evosecurities.com | www.evosecurities.com |
+-------------------------------------------+---------------------------------+
Media enquiries:
+-------------------------------------------+---------------------------------+
| Abchurch Communications | |
+-------------------------------------------+---------------------------------+
| Charlie Jack / George Parker | Tel: +44 (0) 20 7398 7719 |
+-------------------------------------------+---------------------------------+
| george.parker@abchurch-group.com | www.abchurch-group.com |
+-------------------------------------------+---------------------------------+
Notes to Editors
ATH Resources is an AIM-listed operator of surface coal mines in the UK with
five operational mines in Scotland; Skares Road, Grievehill and Laigh Glenmuir
in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife.
The Company is currently the third largest producer of coal in the UK, producing
approximately 2 million tonnes per annum. Coal is used to generate around a
third of the UK's electricity and the Company now holds coal supply contracts
with four of the UK's main electricity generating companies.
The management team has been in place since 1998. It acquired the rights to
operate (and subsequently acquire) the Skares Road mine with support from The
Alchemy Plan. Following ATH Resources' incorporation in October 2003, and backed
by a follow on investment from The Alchemy Plan, the Company acquired the
Garleffan mine in November 2003. Garleffan is currently being restored having
finished coaling in June 2006. ATH Resources listed on the AIM market of the
London Stock Exchange in June 2004.
In June 2005, having raised GBP18 million by way of an Open Offer, the Group
acquired two new opencast sites, Grievehill and Glenmuckloch in Scotland. The
acquisition increased the Group's reserve base by 160%.
In May 2006, the Group acquired ATH Regeneration, a successful coal recovery,
land remediation and regeneration business with a particular focus on colliery
spoil heap reclamation projects. The acquisition, which was earnings enhancing,
allowed ATH to build on its skills as a regenerator of land, whilst developing
strong relationships with key English planning authorities. The Company has been
successfully integrated into the Group. The operational diversification that the
acquisition brings to the Group will be a significant driver of ATH's organic
growth going forward both in the UK and overseas and the business is actively
pursuing a number of projects in Australia.
For the year ending 28 September 2008, the Group achieved turnover of GBP76.9
million, an increase of 9% on its 2007 year end, whilst operating profit
increased by 7% to GBP11.9m for the same period.
Further information on ATH Resources can be found at www.ath.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGMGMGZKGLZZ
ATH Resources (LSE:ATH)
Historical Stock Chart
From Jun 2024 to Jul 2024
ATH Resources (LSE:ATH)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Ath Resources (London Stock Exchange): 0 recent articles
More Ath Resources News Articles