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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Kellan Grp | LSE:KLN | London | Ordinary Share | GB00B03W5P29 | ORD 0.01P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.30 | 0.25 | 0.35 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
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
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(END) Dow Jones Newswires
January 05, 2017 02:00 ET (07:00 GMT)
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