Carpetright PLC Further debt financing update and General Meeting (3626M)

TIDMCPR

RNS Number : 3626M

Carpetright PLC

16 September 2019

LEI: 213800GO32BSNNHXID90

Carpetright plc

("Carpetright" or the "Company")

Further debt financing update and General Meeting

16 September 2019

Introduction

On 27 August 2019, the Company announced that Meditor European Master Fund Limited ("Meditor"), which holds approximately 29.99 per cent. of the Company's issued ordinary share capital, had agreed to acquire the interests of National Westminster Bank plc ("NatWest") and AIB Group (UK) plc ("AIB" and together with NatWest, the "Banks") in the Company's GBP40.7 million revolving credit facility (the "RCF").

The transfer to Meditor of the Banks' interests in the RCF (the "RCF Transfer") has since taken place on 3 September 2019. Whilst the terms of the RCF and the corresponding facility agreement remain unchanged, Meditor has now become the lender of record under the RCF.

Update regarding the RCF

By virtue of its shareholding in the Company, Meditor is a related party of the Company for the purposes of the Listing Rules. Following the RCF Transfer, it has been determined that the utilisation of the RCF, including any repayment or drawdown by the Company, will now constitute a related party transaction. Accordingly, pursuant to the Listing Rules, approval by the Company's independent Shareholders (i.e. disregarding Meditor and its associates) will be required to permit the Company to continue to exercise its rights and perform its obligations under the RCF.

Meditor has therefore agreed in principle with the Company that, amongst other things, the due date for repayment of certain amounts under the RCF will be postponed until the earlier of: (i) the second business day following the grant of such independent Shareholder approval, and (ii) 21 October 2019. The Company intends to enter into full form documentation as soon as possible with respect to such arrangements.

The Directors are comfortable with the company's financial position and expect that this period will provide the Company with sufficient time to seek independent Shareholder approval for the continued operation of the RCF.

Requirement for a General Meeting

Accordingly, the Company's independent Shareholders will be asked at a general meeting of the Company (the "General Meeting") to approve the continued exercise of the Company's rights and performance of its obligations under the RCF (the "Resolution"). A circular containing details of the RCF and the Resolution, together with the notice of general meeting, will be despatched to Shareholders in due course. The Company expects the General Meeting will be held in October 2019.

For further enquiries please contact:

 
 Carpetright plc                      Tel: [phone] 
  Wilf Walsh, Chief Executive 
  Officer 
  Jeremy Simpson, Chief Financial 
  Officer 
 Peel Hunt (Sponsor)                 Tel: [phone] 
  Dan Webster 
  George Sellar 
 Citigate Dewe Rogerson (Financial   Tel: [phone] 
  PR) 
  Kevin Smith 
  Nick Hayns 
 

Important notices

Peel Hunt LLP ("Peel Hunt"), which is authorised and regulated in the United Kingdom by the FCA, is providing sponsor services to the Company in relation to the related party transactions with Meditor. Peel Hunt is acting exclusively for the Company and no one else in connection with such related party transactions and will not be responsible to anyone other than the Company for providing the protections afforded to the clients of Peel Hunt or for providing advice to any other persons in relation to the related party transactions, the content of this announcement or any other matters described in this announcement.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Peel Hunt or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Notes to Editors

Carpetright plc is Europe's leading specialist floor coverings and beds retailer. Since the first store was opened in 1988 the business has developed both organically and through acquisition within the UK and other European countries. The Group is organised into two geographical regions, the UK and the Rest of Europe (comprising the Netherlands, Belgium and the Republic of Ireland).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

MSCLLFITADIELIA

(END) Dow Jones Newswires

September 16, 2019 02:00 ET (06:00 GMT)