Arricano Real Estate PLC Loan Assignment and Amendment (1983L)

TIDMARO

RNS Number : 1983L

Arricano Real Estate PLC

29 September 2016

29 September 2016

Arricano Real Estate plc

("Arricano" or the "Company")

Loan Assignment and Amendment

Arricano (AIM: ARO) announces that the loan facility it currently has with Bytenem Co Limited ("Bytenem") (the "Loan") is being assigned by Bytenem to Retail Real Estate OU ("RRE OU"), a company controlled by Hillar Teder. The principal outstanding under the Loan is US$16.14 million plus accrued interest of approximately US$4.69 million. The Loan has a repayment date of 30 June 2017 and is subject to an interest rate of 12.00% per annum.

Arricano and Bytenem have agreed that on assignment, the Loan principal amount will be increased to a maximum amount of US$18 million which will provide Arricano an additional facility to drawdown a further US$1.86 million, at RRE's sole discretion and subject to availability of funds.

As consideration for the assignment, RRE OU will pay Bytenem US$20.84 million (comprising the principal outstanding and the accrued interest above). The Company has consented to the assignment and amendment of the Loan, which will remain in place as a liability of the Company with its other terms unaffected by the assignment.

Bytenem and RRE OU are controlled by Hillar Teder, who controls 55.45% of the issued ordinary share capital of the Company, and consequently the assignment of the Loan is deemed to be a Related Party Transaction under the AIM Rules. The independent directors of the Company (Rupert Cottrell, Philip Scales and Michael Zampelas) consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

For further information, please contact:

 
 Arricano Real Estate plc        Tel: [phone] 
  Mykhailo Merkulov               6708 
 Nominated Adviser and Joint 
  Broker                           Tel: +44 (0)20 
  Smith & Williamson Corporate     7131 4000 
  Finance Limited 
  Azhic Basirov 
 Joint Broker 
  Whitman Howard Limited           Tel: +44 (0)20 
  Ranald McGregor-Smith            7659 1234 
 Financial PR 
  Novella                          Tel: +44 (0)20 
  Tim Robertson/Ben Heath          3151 7008 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 29, 2016 04:45 ET (08:45 GMT)