New Facility and Notice of General Meeting (4990F)
27 April 2011 - 4:00PM
UK Regulatory
TIDMFAN
RNS Number : 4990F
First Artist Corporation PLC
27 April 2011
FIRST ARTIST CORPORATION PLC
("First Artist" or "the Company" or "the Group")
New Facility
Posting of Circular
Notice of General Meeting
First Artist Corporation plc (AIM: FAN) is pleased to announce
that it has reached an agreement to replace the existing bank
facility with a GBP14,800,000 revolving credit facility (the "New
Facility"). The terms of the New Facility are preferential to the
charges currently being incurred under the existing facility.
The Company's interest charges will be reduced to 3.5 per cent.
over LIBOR for the first 12 months rising to 4 per cent. over LIBOR
for the second 12 months. The Company is currently paying a range
of interest charges for its debt including 10 per cent. over LIBOR
for the mezzanine facility.
In the course of finalizing The New Facility it has come to the
attention of the Board that the Company has exceeded the limits on
the borrowings power available to the Company contained within its
Articles of Association.
The Articles of Association currently provide that the aggregate
outstanding borrowings of the Company and its subsidiaries shall
not at any time exceed an amount equal to three times the Adjusted
Capital and Reserves (as defined in Article 114 of the Articles of
Association).
The Board is proposing to remove the limits on the borrowing
powers contained in its Articles of Association and seek
ratification of the Company's continued entry into the existing
facility which automatically novates to the New Facility. Both
resolutions are required to be approved as a condition of entering
into the New Facility. Thereafter the Company would be able to draw
down against the New Facility with immediate effect.
The Company has posted to shareholders a Notice of General
Meeting at which, inter alia, there will be proposed a special
resolution, which removes the limits on the Company's borrowing
powers contained in its Articles of Association.
The General Meeting of First Artist will be held at the offices
of Seymour Pierce Limited, 20 Old Bailey, London EC4M 7EN on
Tuesday 17 May 2011 at 11.30 am. The Circular will shortly be
available on the Company's website at www.firstartist.com.
Commenting on today's announcement, Jeremy Barbera, Chief
Executive of First Artist said: "Today marks another milestone in
our restructuring of First Artist as we have reduced bank debt and
negotiated a new multi-year revolving credit facility at
considerably lower cost to the Company. We appreciate the ongoing
support of Allied Irish Bank and look forward to benefitting from
the new credit facility beginning on May 17(th) directly after the
General Meeting."
Enquiries:
First Artist Corporation Plc
Jeremy Barbera/David Stoller/ Shirley Stapleton Tel: +44 20
79930000
Seymour Pierce Limited
Stewart Dickson /Tom Sheldon Tel: +44 20 71078000
Bishopsgate Communications Limited
Duncan McCormick Tel: +44 20 75623350
This information is provided by RNS
The company news service from the London Stock Exchange
END
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