Issue of Debt

RNS Number:6962N
Marylebone Warwick Balfour Grp PLC
17 July 2003


FOR IMMEDIATE RELEASE

17th July 2003


                      MARYLEBONE WARWICK BALFOUR GROUP Plc

                      ISSUE OF #15m OF FURTHER LOAN STOCK


Marylebone Warwick Balfour Group Plc ("the Group" or "the Company") today
announces that terms have been agreed to raise #15m (before expenses) from the
Active Value Funds ("Active Value") by the issue at par of #15m of further 7.5%
unsecured loan stock 2005/6 ("Further Loan Stock"). The issue increases the
total issued and outstanding loan stock of the Company to approximately #28m
nominal.

Reasons for the Placing

The funds from the placing will provide further working capital to the Group,
allowing the Group to mature its key operational businesses. The use of the
proceeds may include the funding of further restructuring proposals for the
Group's European business centre operations and taking advantage of further
opportunities in the Group's Malmaison, Liberty and Business Exchange divisions.
The proceeds will also provide flexibility on the timing of disposals, enabling
them to be made at points in the market cycle that are expected to enhance
returns to Shareholders.

The Board has concluded that a placing of Further Loan Stock with Active Value
will provide certainty of funding, and is on terms considered to be as
favourable to the Company as those available to it from raising unsecured
funding from the Company's usual lending institutions.

Details of the Placing

The Further Loan Stock will be issued on an unsecured basis, and on the same
commercial and other terms which are applicable to the existing loan stock.

The Further Loan Stock will, when issued, rank pari passu in all respects with
the existing loan stock, save that the first payment of interest will be in
respect of the period commencing on the date of issue of the Further Loan Stock
and ending on 31st December 2003. It is intended that the Further Loan Stock
will be in registered form and will be issued credited as fully paid and free
from all liens charges and encumbrances. The Further Loan Stock, which will form
a single series with the existing loan stock, is expected to be issued on the
day of admission.

The Further Loan Stock is being issued at a premium of approximately 5.3 per
cent. to the average market value on the 3 days prior to this announcement of
#0.95 per #1 nominal of Loan Stock. The gross redemption yield, at the issue
price of #1 per #1 nominal of Loan Stock, is 18.1 per cent., assuming the
Company redeems the Loan Stock on the earliest possible redemption date of 30th
June 2005, or 14.9 per cent., assuming the Company redeems the Loan Stock on the
final redemption date of 30th June 2006.

The Group has applied to the UK Listing Authority for the Further Loan Stock to
be admitted to the Official List, and to the London Stock Exchange for admission
to trading on its market for listed securities, where the existing loan stock is
currently listed and traded. It is expected that such admission will become
effective on 23rd July 2003.

Listing particulars in connection with the issue have been published today and
have been despatched to holders of the existing loan stock for information. The
listing particulars will be available for inspection at the UK Listing
Authority's Document Viewing Facility, which is situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London

E14 5HS


Contact:
Richard Balfour-Lynn, Chief Executive, MWB            Tel: [phone]
Baron Phillips, Baron Phillips Associates             Tel: [phone]

Ends


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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