Pan European Terminals PLC Re-Financing of Loan Note (5057R)

TIDMPAN

RNS Number : 5057R

Pan European Terminals PLC

20 November 2012

Pan European Terminals PLC

Re-Financing of Loan Note

Pan European Terminals PLC ("Pan European" or the "Company") is pleased to announce that it has, on 19th November 2012, completed a re-financing of its $11.0 million secured fixed rate loan (the "2011 Note") which was raised to fund the acquisition of Dan Balt Tank Lager Terminal A/S, Denmark in November 2011.

The US$ denominated 2011 Note will be repaid from the proceeds of an GBP8.5 million secured convertible fixed rate loan note (the "Loan Note") which has been issued by Dan Balt Terminals Limited, a 100% subsidiary of the Company. The Loan Note matures on 19(th) November 2015, carries interest at 10 per cent. per annum and has been admitted to the Official List of the Channel Islands Stock Exchange ("CISX"). At the same time the 2011 Note has been delisted from the CISX.

The 2011 Note carried interest of 15% with an early redemption premium if paid out before May 2013. However the early redemption fee has been waived on the 2011 Note and no payment has been made.

The Loan Note may also be converted into ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") at a price of 22p per Ordinary Share ("Conversion"), a premium of 25.7 per cent. to the closing price of 17.5p on 19(th) November 2012 and 30.6 per cent. to the 3 month average closing price prior to the same date. Conversion would result in the issue of 38,636,363 Ordinary Shares representing 27.7 per cent. of the Company's current issued share capital as enlarged by Conversion. Conversion is subject to the Company's shareholders approving the relevant authorities to issue the new Ordinary Shares arising upon Conversion and the Company is liable to a penalty payment of GBP550,000 if such authorities are not approved by 19(th) November 2013. The Company can redeem the Loan Note at any time after 19(th) November 2013 on 60 days notice without penalty. The balance of funds, after repayment of the 2011 Note, will be used for transaction costs and general working capital purposes.

Current trading remains in line with the Board's expectations and good progress is being made to utilise all the capacity of the Company's terminals in 2013. In addition, the Board is continuing to review strategic options for its Russian assets. The Company intends to issue a fuller trading update in due course.

Simon Escott, CEO commented; "I am pleased to have strengthened the Company's cash position and to have refinanced the loan well before its maturity date at a much reduced cost. This is especially pleasing in an extremely difficult financial market."

Enquiries:

 
Pan European Terminals PLC      Tel: [phone] 
Simon Escott Chief Executive 
 
 
  Westhouse Securities Limited    Tel: [phone] 
Richard Johnson/Antonio Bossi 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCVKLFFLFFFFBQ