Reach4Entertainment Enterprises PLC Update on debt facilities with PNC (5615L)
20 July 2017 - 4:00PM
UK Regulatory
TIDMR4E
RNS Number : 5615L
Reach4Entertainment Enterprises PLC
20 July 2017
Prior to publication, certain information contained within this
announcement was deemed to constitute inside information for the
purposes of Article 7 of EU Regulation 596/2014 (MAR). Upon
publication of this announcement, this information is now
considered to be in the public domain.
20 July 2017
reach4entertainment enterprises plc
('r4e', the 'Company' or the 'Group')
Update on debt facilities with PNC
r4e, the transatlantic media and entertainment company, is
pleased to announce it has agreed a variation of the covenants on
its 3-year secured asset based debt facility (the 'Facility') with
PNC Business Credit ('PNC') to reflect the shift in the weighting
of the Group's revenues in 2016 and 2017 which affected the
12-month rolling covenant test. This variation of the covenants
agreement follows on from the statement made in the Company's full
year results for the year ended 31 December 2017, announced on 26
April 2017, regarding potential breaches of one of the covenants
given by the Company to PNC due to the unusual weighting of
revenues towards the first half of 2016. With the revised covenants
now accommodating this change in revenue weighting, a breach is not
expected to occur. The Company has met all the covenants to date in
2017.
In addition, the Company has been able to repay its Cash Flow
Term Debt facility with PNC of GBP553,081. Repayment was made from
unutilised proceeds from the October 2016 share placing, which has
not been required for investment into the Company's new initiatives
as a result of these initiatives performing better than expected in
2017. The repayment will result in reduced interest costs in 2017.
The monies used to repay the Cash Flow Term Debt facility are
expected to be replaced over the course of the next 12 months from
the cash flows of the subsidiary companies to provide further
investment for the ongoing or new initiatives.
Enquiries:
reach4entertainment enterprises
plc
+44 (0) 20 7968
David Stoller, Executive Chairman 1655
Allenby Capital (Nominated Adviser +44 (0) 20 3328
and Broker) 5656
Jeremy Porter/James Reeve (Corporate
Finance)
Katrina Perez/Kelly Gardiner
Novella Communications (Financial +44 (0) 20 3151
PR) 7008
Tim Robertson
Toby Andrews
This information is provided by RNS
The company news service from the London Stock Exchange
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