Orchid Developments Group Ltd Amended Credit Facility Secured for Multicomplex (5960N)

TIDMOCH

RNS Number : 5960N

Orchid Developments Group Ltd

01 October 2012

01 October 2012

AIM: OCH

Orchid Developments Group Limited

('Orchid' or the 'Group')

Amended Credit Facility Secured for Orchid Multicomplex Varna (Grand Mall Varna)

Orchid Developments, the Bulgarian focused property developer and investor, announces that it has entered into an amendment agreement with the European banking consortium led by OTP and MKB Group (the "Banks") to amend certain terms of the Company's existing EUR97.6 million credit facility agreement ("Facility") related to the Group's multi-use complex in Varna ("Grand Mall Varna").

Under the term of the amended Facility, the Company has agreed with the Banks, inter alia, that:

(1) the payment of principal amounts due under the loan (approximately EUR2.4 million) for the period from July 2012 to June 2013 shall be suspended unless the Group's cash flow is sufficient to permit a cash sweep of part or all of the suspended principal sum due in the period. Non-payment of the loan principal during this period shall not trigger an event of default under the Facility;

(2) the suspended principal payment of EUR2.4 million referred to above shall be repaid by 30 June 2015;

(3) during the suspension period, the Banks shall waive existing requirements for the Group's debt service coverage ratio ("DSCR") under the Facility, with the exception that the DSCR shall not fall under 1; and

(4) certain requirements concerning average rental fee per square metre and tenancy terms shall be varied to promote greater occupancy rates and revenue generation.

The amendment will formally completed, subject to the fulfillment of various registration covenants.

Commenting on the revised Facility, Guy Meyohas, CEO of Orchid Developments, said:

"The agreement of the revised Facility demonstrates Orchid's good relationship with the Banks, despite the fact that the Group continues to operate in a tough market. Orchid is continuing to market its flagship project, which is evidenced by a gradual increase in its occupancy and turnover. The new terms agreed with the Banks will allow the Group to provide further competitive terms to potential new tenants."

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Contacts: 
Orchid Developments 
 Guy Meyohas                           [phone] 
Shore Capital and Corporate Limited 
 Bidhi Bhoma / Toby Gibbs              [phone] 
MHP Communications 
 Reg Hoare / Vicky Watkins             [phone] 
 

Notes to Editors:

Orchid Developments Group Ltd (OCH.L), which listed on the AIM market in July 2005, was established with the aim of generating value for shareholders by investing in real estate and leisure business opportunities initially in Bulgaria.

The Group is active in all principal sub-sectors of the Bulgarian real estate and leisure markets and currently holds three residential and six commercial property developments in Sofia and Varna. Its principal investment is the Grand Mall in Varna, a leading shopping mall in Bulgaria.

This information is provided by RNS

The company news service from the London Stock Exchange

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