RNS Number : 2313I
Preston North End PLC
14 November 2008
Preston North End plc
("Preston North End" or the "Company")
Loan Agreements
The Company confirms today that it is finalising the terms of two loan agreements to be made between the Company and (i) the Friends of
Preston North End Limited and (ii) Guild Ventures Limited which will govern the terms of two loans totalling £7.1 million (the "Loans") (of
which £990,000 has been advanced by Friends of Preston North End Limited and the remainder has been advanced by Guild Ventures Limited) (the
"Loan Agreements").
£4.6 million of the Loans were drawn down in the financial year ended 30 June 2008, with the balance drawn down in the period since the
year end date.
The Loans have been used by the Company to fund player purchases and ongoing working capital requirements.
The Loans accrue interest from either the date of drawdown (in the case of the loan from Guild Ventures Limited) or 1 October 2008 (in
the case of the loan from Friends of Preston North End Limited) to the date of repayment at a rate of LIBOR plus 3% and have a repayment
date of January 2010. To date interest amounting to £290,326 has accrued.
Derek Shaw, the Chairman of the Company, is a director and shareholder of Friends of Preston North End Limited.
The Directors, other than Derek Shaw who is a related party in this transaction, consider, having consulted with the Company's nominated
adviser, WH Ireland Limited, that the terms of the Loans are fair and reasonable insofar as its shareholders are concerned.
A further announcement as to the execution of the Loan Agreements will be made in due course.
For further information please contact:
Kevin Abbott, Preston North End plc Tel: 0870 442 1964
David Youngman, WH Ireland Limited Tel: 0161 832 2174
This information is provided by RNS
The company news service from the London Stock Exchange
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