Repayment of Loan Notes

RNS Number:5297Q
Springhealth Leisure PLC
03 October 2003


3 October 2003

SPRINGHEALTH LEISURE PLC

SCHEDULED REPAYMENT OF LOAN NOTES AND RELATED PARTY LOAN TRANSACTION

SpringHealth Leisure PLC ("the Company"), the health and fitness clubs operator, 
announces that it will redeem the second tranche of loan notes amounting to 
#0.95 million on 6 October 2003. The loan notes, whose aggregate value was 
#6.65 million on issue in October 2000, carry a fixed interest rate of 7 per 
cent. and were due to be redeemed on the second, third and fourth anniversary 
of their issue in tranches of #1.7 million, #0.95 million and #4.0 million 
respectively. The first tranche has already been repaid.

This leaves outstanding the final tranche of #4.0 million of loan notes due in 
October 2004.

The repayment of the second tranche is being financed by a loan of #0.9 million 
from Thistledown Investments Limited, a company controlled by Sandy Anderson 
(the "Loan"). The Loan is classified as a related party transaction under the 
AIM Rules because Sandy Anderson is both the non-executive Chairman and a major 
shareholder of the Company.

The Loan carries an interest rate of 2.5 per cent. above base rate. The Loan is 
repayable in full in two years time and is secured by a fixed and floating 
charge over the assets of the Company, but is subject to a priority in favour 
of Barclays Bank plc and the loan note holders.

The directors of the Company, other than Sandy Anderson, having consulted with
Arbuthnot Securities Limited, consider that the terms of the Loan are fair and
reasonable insofar as Shareholders of the Company are concerned.


Enquiries to:

SpringHealth Leisure plc
Eric Lowry, Chief Executive                01454 877648
Russell Hudson, Finance Director           01454 877648

Arbuthnot Securities Limited
Tom Griffiths                              020 7002 4600



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