Kellan Group (The) PLC Further re. Redemption of Loan Notes & Refinancing (3743T)
05 January 2017 - 6:00PM
UK Regulatory
TIDMKLN
RNS Number : 3743T
Kellan Group (The) PLC
05 January 2017
AIM: KLN
5 January 2017
The Kellan Group PLC
("Kellan", the "Company" or "Group")
Further re. Redemption of Convertible Loan Notes and
Refinancing
Further to the announcement dated 26 October 2016, the Company
is pleased to announce that it has agreed terms to refinance the
remainder of its loan obligations that were due on 14 February
2017. The completion of the debt restructuring plan will improve
the Company's balance sheet whilst reducing ongoing financing
costs. The Company will redeem GBP150,000 nominal of the 12%
secured convertible loan notes 2010 ("2010 Loan Notes") and
GBP150,000 nominal of the 12% unsecured convertible loan notes 2011
("2011 Loan Notes") at par ("the Redemption") on or before 15 March
2017 ("the Due Date"). As part of the repayment terms, the holder
has agreed, conditional upon the Redemption being completed on or
before the Due Date, to waive the interest due in relation to the
period from 1 February 2016 and extend the redemption date to the
Due Date.
The GBP300,000 cost of the Redemption will be funded as to
GBP150,000 by drawdown on the existing confidential invoice
discounting facility provided to the Company by Barclays. The
remaining GBP150,000 will be funded by BMN Commercial Limited ("BMN
Commercial") This will be effected by increasing the existing
GBP1,260,000 secured term loan (carrying an interest rate of 5 per
cent. per annum and repayable on 20 September 2022) by an
additional GBP150,000 ("the Additional Loan") to GBP1,410,000.
Additionally, the Company has increased the GBP366,100 Revolving
Facility from BMN Commercial by an additional GBP150,000 to
GBP516,100 ("the Additional Revolving Facility"). The Additional
Revolving Facility is effectively a replacement for the Barclays
drawdown to ensure the overall Company headroom is unaffected. The
Barclays drawdown is at a substantially lower rate of 1.6% over
base (1.85%), than the Revolving Facility and ensures the Company
uses its cheapest means of funding first.
Under the AIM Rules, BMN Commercial is deemed to be a related
party. Accordingly, the independent directors of the Company
consider, having consulted with the Company's nominated adviser,
Allenby Capital Limited, that the terms of the Additional Loan with
BMN Commercial and the Additional Revolving Facility provided by
BMN Commercial are fair and reasonable so far as the shareholders
of Kellan are concerned.
The terms used in this announcement are the same as those used
in the announcement dated 26 October 2016.
Richard Ward, Executive Chairman, commented, "We are delighted
to have secured agreement on the refinancing and redemption of the
remainder of the 2010 Loan Notes and 2011 Loan Notes. As a result,
on completion of the refinancing in March 2017, the Company will be
in a stronger financial position, improving its balance sheet and
reducing its ongoing financing costs. This will enable the Company
to pursue its organic and acquisitive growth strategy without any
further distractions."
ENQUIRIES:
The Kellan Group PLC Tel: 020 7268 6200
Rakesh Kirpalani,
Group Finance Director
Allenby Capital Limited Tel: 020 3328 5656
David Worlidge / James
Thomas
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUGUUGGUPMGMC
(END) Dow Jones Newswires
January 05, 2017 02:00 ET (07:00 GMT)
Kellan Group (LSE:KLN)
Historical Stock Chart
From Apr 2024 to May 2024
Kellan Group (LSE:KLN)
Historical Stock Chart
From May 2023 to May 2024