Braemar Shipping Services PLC Braemar Naves Payment Rescheduling (6507A)

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RNS Number : 6507A

Braemar Shipping Services PLC

03 June 2021

   BRAEMAR   SHIPPING SERVICES PLC 

("Braemar", the "Company" or the "Group")

3 June 2021

Braemar Naves Payment Rescheduling

and

Related Party Transaction

Braemar, a leading international Shipbroker and provider of expert advice in shipping investment, chartering and risk management, is pleased to announce that it has agreed a rescheduling of deferred consideration amounts owed by Braemar in relation to its acquisition of Braemar Naves in 2017, alongside the integration of its Financial Division, which was created by the acquisition, into its Shipbroking Division (the "Restructuring").

The integration of the Financial Division into the Shipbroking Division is part of Braemar's strategy to streamline the Group and focus on its core Shipbroking business. Braemar believes that the integration will further improve collaboration and enhance client service.

The Restructuring will see over EUR2.9m, which was previously due for repayment before the end of December 2022, being deferred to be paid no earlier than September 2025. In addition, a further amount of approximately EUR0.75m will be satisfied by the issue of new ordinary shares in the capital of the Company in three tranches between September 2021 and December 2022. The recipients of these shares have agreed to "lock-up" restrictions in relation to the new shares.

As a result of the Restructuring, the earliest redemption dates of the outstanding balance of the deferred consideration, including those amounts to be satisfied by the new shares, will be as follows (with the total of these amounts not being affected by the Restructuring):

 
 Financial year ending    Amount / GBPm   Amount / EURm 
 Feb-22                   3.1*            3.5* 
                         --------------  -------------- 
 Feb-23                   1.4**           1.6** 
                         --------------  -------------- 
 Feb-24                   0.6             0.7 
                         --------------  -------------- 
 Feb-25                   0.6             0.7 
                         --------------  -------------- 
 Feb-26                   2.5             2.9 
                         --------------  -------------- 
 

* Including approximately EUR0.6m / GBP0.5m to be satisfied by the issue of new shares

** Including approximately EUR0.1m / GBP0.1m to be satisfied by the issue of new shares

As part of the Restructuring, Braemar has also agreed to increase the interest rate on certain of the consideration loan notes (to the extent still outstanding) to five per cent. per annum from September 2025.

The Restructuring has been agreed with two of Braemar Naves' Managing Directors, Axel Siepmann and Mark Kuchenbecker, and their connected parties (Kesone Verwaltungsgesellschaft mbH, Siepmann & Cie. Verwaltungs GmbH, CFC Beteiligungsgesellschaft mbH and Risorto GmbH). Axel Siepmann and Mark Kuchenbecker are related parties of the Company pursuant to Chapter 11 of the Listing Rules. The Restructuring is a smaller related party transaction pursuant to LR11.1.10R, and this announcement therefore includes the details required by Listing Rule 11.1.10R(2)(c).

James Gundy, Group Chief Executive Officer of Braemar, said:

"I am delighted to complete another step in the rationalisation of the Braemar Group and the delivery of our new growth strategy centred on Shipbroking. The Restructuring will enable us to improve client service by developing and enhancing our specialist expertise in shipping investment and corporate finance, and will also help to further strengthen our balance sheet, positioning the Group even more strongly for future growth."

For further information, contact:

 
 Braemar Shipping Services 
  James Gundy, Group Chief Executive    Tel [phone] 
   Officer 
  Nick Stone, Group Chief Operating 
   Officer & Finance Director 
  Peter Mason, Company Secretary 
 finnCap 
  Matt Goode / James Thompson           Tel [phone] 
 
 
  Buchanan 
  Charles Ryland / Victoria Hayns /     Tel [phone] 
   Stephanie Watson / Matilda Abraham 
 

Notes to Editors:

About Braemar Shipping Services Plc

Braemar is a leading international Shipbroker and provider of expert advice in shipping investment, chartering and risk management. Braemar employs approximately 520 people in 30 offices worldwide across its Shipbroking, Financial and Logistics divisions.

Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.

For more information, including our investor presentation, visit www.braemar.com

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June 03, 2021 02:01 ET (06:01 GMT)