Reach4Entertainment Enterprises PLC New Debt Facility (1652A)

TIDMR4E

RNS Number : 1652A

Reach4Entertainment Enterprises PLC

25 September 2015

25 September 2015

reach4entertainment enterprises plc

('r4e' or the 'Company')

Funding Update

On 10 June 2015, r4e announced its agreement with Allied Irish Bank ("AIB") to restructure the Company's outstanding GBP14.59m loan, whereby GBP5.15m of the loan is to be converted into new ordinary shares in r4e and the balance repaid in cash (the "AIB Agreement").

r4e is now pleased to announce that it has received an offer letter for a new 3 year secured asset based debt facility of up to GBP9.5m with PNC Business Credit ("PNC") to be used to refinance the AIB loan and provide the Company with working capital (the "Proposed New Facility"). PNC is a trading name of PNC Financial Services UK Ltd, ultimately a wholly owned subsidiary of PNC Bank National Association, one of the largest financial institutions in the United States.

The Proposed New Facility will be made up of a cash flow term facility of GBP1m and a revolving credit facility of up to GBP8.5m based on qualifying accounts receivable. The Board of r4e expect that initial funds available for drawdown under the revolving credit facility will be approximately GBP6m, depending on accounts receivable at the time. PNC's provision of the Proposed New Facility will be subject to agreement of legal documentation and the satisfaction of certain conditions precedent, including the condition for r4e to raise a minimum of GBP3.5m of new equity capital. On satisfaction of these conditions, the Board of r4e expect that r4e will be able to satisfy the cash repayment required under the AIB Agreement. The Company is already in discussions to raise new equity capital and further updates will be announced in due course.

David Stoller, Chairman of r4e, commented: "We are delighted to receive this new debt facility offer from PNC. This is an important milestone in our refinancing plans which provides additional clarity over our medium term funding structure. We now look forward to finalising our plans to raise the equity capital required".

Enquiries:

 
reach4entertainment                          [phone] 
David Stoller, Executive Chairman 
 
Allenby Capital Limited (Nominated Adviser 
 and Broker)                                 [phone] 
Jeremy Porter / James Reeve (Corporate 
 Finance) 
Katrina Perez / Kelly Gardiner (Corporate 
 Broking) 
 
Novella Communications (Financial PR)        [phone] 
Tim Robertson                                [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 25, 2015 02:00 ET (06:00 GMT)