Statement re refinancing
November 04 2009 - 11:21AM
UK Regulatory
TIDMMPG
RNS Number : 9779B
Maypole Group plc
04 November 2009
Maypole Group Plc
(`Maypole' or the 'Group')
Maypole Group plc completes refinancing
4 November 2009
Maypole Group plc, the AIM quoted UK countryside hotels with restaurants group,
today announces that it has completed its refinancing with its existing bankers
Clydesdale Bank plc. The refinancing has restructured the Group's debt which
will lead to improved cash flow through delayed capital and interest repayments
and new funding being brought into the business.
Long Term Loans
The Company's existing long term loan of GBP7.42m at 7.45% per annum has been
re-set at GBP7.407m at 8.95% per annum (being 5.45% fixed with a 3.5% margin).
Capital repayments under the new facility have been deferred until March 2011
with earlier repayments potentially required if the Group meets minimum
operating cashflow targets. The loan remains repayable in February 2029.
Leasehold Facilities
The Group currently has two medium term leasehold loan facilities totalling
GBP0.79m at 2% above bank base rate. Some GBP0.437m of these facilities have
been drawn down and were due for repayment in May and July 2012. These
facilities, together with GBP0.45m formerly available under the Group's
overdraft facility, have now been combined into one long term loan of
GBP1.25m repayable on 28 February 2022, including a further GBP0.363m available
for drawdown. Interest will be charged at 15% per annum above LIBOR and is to
be repaid at the end of the loan. A monthly monitoring fee is also payable.
Overdraft Facility
Following conversion of GBP0.45m of the Group's on demand overdraft facility
into a long term loan, the Group's overdraft facility now stands at GBP0.15m,
expiring in May 2010, at an increased interest rate of 4% per annum above the
Clydesdale base rate.
Blocked Account
As security for its loan arrangements and in addition to various charges and
guarantees given by Group companies and certain directors, Clydesdale Bank plc
has the benefit of GBP2.05m on a blocked deposit. Interest receivable by the
Group on this will be increased from 0.5% to 3.5% per annum, equal to the margin
on the long term loan described above.
Deferred Consideration - Transaction with Directors
GBP250,000 was due to be paid by the Group as deferred consideration to the
vendors of Wayford Bridge Inn on 28 February 2009 along with interest accruing
at 15% per annum and, since end February 2009, 20% per annum. Simon Bentley and
Alastair McEwen, directors of Maypole, have directly assumed the obligation to
repay the vendors all such principal and the vendors have accordingly released
all security which they held in respect of the Group. In return for this the
Group has entered into subordinated unsecured loan agreements with Messrs
Bentley and McEwen each for GBP125,000, with interest accruing at 10% per annum
and all principal and interest to be repaid on maturity of the loans in two
years' time. The independent directors, having consulted with Blomfield
Corporate Finance Ltd, Maypole's nominated adviser, consider that the terms of
this re-financing are fair and reasonable insofar as its shareholders are
concerned. Simon Bentley is also a substantial shareholder in Maypole.
In addition to the GBP250,000 advanced by Messrs Bentley and McEwen in
connection with the new loan, Mr Bentley and entities associated with him have
advanced the following sums to the Company, which are subordinated to the
Clydesdale indebtedness and on which interest is being rolled-up to maturity:
+------------------+------------------+------------------+------------------+
| Sum | Advance date | Term | Coupon |
+------------------+------------------+------------------+------------------+
| GBP100,000 | 28 January 2009 | On demand | 18% |
+------------------+------------------+------------------+------------------+
| *GBP450,000 | 3 December 2008 | On demand | 18% |
+------------------+------------------+------------------+------------------+
| GBP600,000 | 21 October 2008 | 2 years | 18% |
+------------------+------------------+------------------+------------------+
| **GBP55,000 | 25 January 2007 | 2 | 15% |
| | | years, extended | |
+------------------+------------------+------------------+------------------+
* - advanced by Regents Park Estates Limited, wholly-owned by Mr Bentley.
** - advanced by Regents Park Estates Pension Scheme, a pension scheme of which
Mr Bentley is the sole beneficiary.
For further information:
+----------------------------------------------+----------------------------+
| Maypole Group plc | 020 7317 8022 |
+----------------------------------------------+----------------------------+
| Simon Bentley - Chairman | |
+----------------------------------------------+----------------------------+
| | |
+----------------------------------------------+----------------------------+
| Blomfield Corporate Finance Ltd | 020 7444 0800 |
+----------------------------------------------+----------------------------+
| Peter Trevelyan-Clark / Alan MacKenzie / | |
| Ben Jeynes | |
+----------------------------------------------+----------------------------+
| | |
+----------------------------------------------+----------------------------+
| Alexander David Securities Ltd | 020 7448 9820 |
+----------------------------------------------+----------------------------+
| David Scott / Bill Sharp | |
+----------------------------------------------+----------------------------+
| | |
+----------------------------------------------+----------------------------+
| Weber Shandwick Financial | 020 7067 0700 |
+----------------------------------------------+----------------------------+
| Nick Dibden / Katie Matthews | |
+----------------------------------------------+----------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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