Porta Communications PLC Financial Completion of New Banking Facility (7411H)

TIDMPTCM

RNS Number : 7411H

Porta Communications PLC

12 June 2017

12 June 2017

Porta Communications Plc

("Porta" or "the Company")

Financial Completion of New Banking Facility

Porta Communications Plc (AIM: PTCM), the international communications and marketing group, is pleased to announce that, further to the announcement of 8 June 2017, it has formally implemented the revolving credit facility ("RCF") with Clydesdale Bank Plc ("Clydesdale") and that all of the conditions precedent have been satisfied, enabling the Company to draw down on the RCF.

As required by the RCF agreement, the Company and certain of its subsidiaries have signed an intercreditor agreement with Clydesdale and the Company's existing lenders, Hawk Investment Holdings Limited ("Hawk") and Retro Grand Limited ("Retro Grand"), which subordinates their loans to the senior RCF bank debt (the "Intercreditor Agreement"). The Intercreditor Agreement also contains certain conditions in relation to interest payments and restrictions on capital repayments against the existing loans from Hawk and Retro Grand to the Company during the term of the RCF.

Security for the RCF has been granted to Clydesdale over the assets of the Company and certain of its wholly owned subsidiaries.

Related Party Transaction

The signing of the Intercreditor Agreement constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies, as Hawk and Retro Grand are related parties of the Company. Hawk is a substantial shareholder of the Company. Morton PTC Limited, as the trustee of the Morton Family Trust, is the legal owner of Hawk, and as the trustee of the Edward Trust, is the legal owner of Retro Grand.

The directors consider, having consulted with the Company's nominated adviser, Grant Thornton UK LLP, that the terms of this transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries

Porta Communications Plc

Steffan Williams, CEO

Rhydian Bankes, CFO

www.portacomms.com

[phone]

Grant Thornton UK LLP (Nominated Adviser)

Philip Secrett

Samantha Harrison

Daniel Bush

[phone]

N+1 Singer (Broker)

James Maxwell

Lauren Kettle

[phone]

Newgate Communications (Media Enquiries)

Bob Huxford

Adam Lloyd

James Ash

[phone]

Notes to Editors:

Porta is a fully integrated communications and marketing group with specialisms including financial, corporate and consumer public relations, public affairs and research and multi-capability marketing, brand and creative communications.

The Group has offices in Abu Dhabi, Beijing, Brisbane, Bristol, Canberra, Cardiff, Edinburgh, Hong Kong, London, Manchester, Melbourne, Singapore and Sydney.

The brands and companies it owns are: Newgate Communications, Redleaf Communications, Publicasity, 2112 Communications and Summit Marketing Services.

Porta Communications' corporate website is - www.portacomms.com

This information is provided by RNS

The company news service from the London Stock Exchange

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June 12, 2017 02:00 ET (06:00 GMT)