Further Extension of Burnbrae Loan Facility (4123B)
April 16 2012 - 7:47AM
UK Regulatory
TIDMSYG
RNS Number : 4123B
Speymill PLC
16 April 2012
For Immediate Release 16 April 2012
Speymill plc
("Speymill" or the "Company")
Further Extension of Burnbrae Loan facility
Speymill (AIM:SYG), the multinational property services group,
announces that Jim Mellon, a director and substantial shareholder
of Speymill, together with Burnbrae Limited (together the
"Lenders"), have today entered into an agreement with the Company
to extend the existing shareholder loan facility of GBP5 million
(the "Loan"). This extension rolls forward the previous shareholder
loan extended to the Company, as announced on 27 June 2011.
The terms of the Loan are as follows:
Term: Matures on 30 June 2013
Interest rate: 8% per annum which will accrue daily and
compounded on the 31 December in each calendar year until the Loan
is converted. Interest is payable in arrears on the date of
repayment. The interest rates charged for previous facilities were
12% from 29 January 2009 to 1 December 2010 and 9% from 2 December
2010 to 30 June 2011.
Conversion: The Lenders will have the right, but not the
obligation, to convert some or all of the principal and amounts
accrued under the Loan to ordinary share capital subject to
regulatory approval. The conversion price will be 6p per share.
Facility Fee: On drawdown of an amount of the Loan (an
"Advance"), an amount of 3% of the amount of the Advance will be
added to the Advance and form part of the principal repayable on
the date of repayment, subject to a maximum aggregate fee of
GBP48,000.
The Company has drawn down GBP3.4m of this facility. The
additional funds will be used to assist the Company with its
working capital requirements.
Mr Mellon and Burnbrae Limited, a company which is indirectly
wholly owned by the trustee of a settlement under which Mr Mellon
has a life interest are considered to be related parties to the
Company and, therefore, the extension of the Loan is considered to
be a related party transaction pursuant to Rule 13 of the AIM Rules
for Companies. The Company's directors (with the exception of Mr
Mellon and Denham Eke, who is also Managing Director of Burnbrae
Limited), having consulted with the Company's nominated adviser,
Beaumont Cornish Limited, consider that the terms of the
transaction are fair and reasonable insofar as the Company's
shareholders are concerned.
-END-
For further information, please contact:
Speymill plc Tel: +44 (0) 1624 640860
Denham Eke www.speymill.com
Beaumont Cornish Limited (Nominated Tel: +44 (0)20 7628 3396
Adviser)
Roland Cornish and James Biddle
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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