GYG PLC Refinancing Loan Agreement & RPT (8115V)
16 December 2021 - 06:00PM
UK Regulatory
TIDMGYG
RNS Number : 8115V
GYG PLC
16 December 2021
16 December 2021
GYG plc
("GYG" or the "Company")
Refinancing Loan Agreement & Related Party Transaction
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, announces that it has repaid and
refinanced the EUR3.0 million short term loan provided by North
Atlantic Smaller Companies Investment Trust plc ("NASCIT"), an
associate of Harwood Capital LLP ("Harwood"), the Company's second
largest shareholder), as announced on 28 July 2021 (the "Existing
Loan" or "Existing Loan Agreement").
The maturity date of the Existing Loan was 31 December 2021,
however, on 15 December 2021, the Company agreed terms with Harwood
Capital Management Limited, an associate of Harwood, to advance a
loan of EUR3.0 million (the "New Loan" or "New Loan Agreement").
The New Loan will be used to repay the principal sum due and the
Company will also settle accrued interest in full and final
settlement of the Existing Loan.
The New Loan attracts reduced interest at 8% p.a., with a
maturity date of 31 March 2022. All other key terms of the New Loan
Agreement remain unchanged from the Existing Loan Agreement, with
the New Loan secured by way of an assignment over the outstanding
invoices related to work performed by the Company for the Nobiskrug
Shipyard. As before, there are no arrangement fees associated with
the New Loan, which can be repaid by the Company at any time
without penalty on or before its maturity date.
The Board remains confident of reaching a successful outcome in
relation to the outstanding invoices related to Nobiskrug as
previously notified, however, reaching a resolution has taken
longer than any of the parties expected. In light of this, the
Board viewed it as prudent to re-finance the Existing Loan. The
Board continues to be confident that the Group can meet its working
capital requirements and repay its borrowings as they fall due
provided that the Nobiskrug situation is resolved before 31 March
2022.
Related party transaction
Harwood, a substantial shareholder in the Company, is also
classified as a related party under the AIM Rules for Companies
("AIM Rules"). Entry into the New Loan Agreement therefore
constitutes a related party transaction under the AIM Rules.
Accordingly, the Directors (each of whom is considered by the Board
to be independent of Harwood), consider, having consulted with
Singer Capital Markets Advisory LLP, acting in its capacity as the
Company's nominated adviser, that the terms of the New Loan are
fair and reasonable insofar as the Company's shareholders are
concerned.
For further information:
GYG plc via FTI Consulting
Remy Millott, Chief Executive Tel: +44 (0) 20 3727 1000
Officer
Kevin McNair, Chief Financial
Officer
Singer Capital Markets Tel: +44 (0) 20 7496 3000
Tom Salvesen
Peter Steel, Amanda Gray
FTI Consulting Tel: +44 (0) 20 3727 1000
Alex Beagley
Fiona Walker
Rafaella de Freitas
Notes to Editors:
GYG is the market leading superyacht painting, supply and
maintenance company, offering services globally through operations
in the Mediterranean, Northern Europe and the United States. The
Company's brands include Pinmar, Pinmar Yacht Supply, and
Technocraft. GYG's operations can be divided into three key sales
channels:
-- Refit: repainting and finishing of superyachts, normally as
part of a refit programme. Revenues also include scaffolding and
containment work;
-- New Build: fairing and painting of new vessels as part of the build process; and
-- Supply: selling and delivery of maintenance materials,
consumables, spare parts and equipment primarily to trade
customers.
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under the UK
version of article 7 of the Market Abuse Regulation (EU) No.
596/2014.
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