Business
BANKING FACILITIES RE-STRUCTU
BANKING FACILITIES RE-STRUCTU.
About this update from Artisanal Spirits Company Plc
[{"type":"text","content":"\n RNS Number : 2037U Artisan (UK) PLC 19 June 2009 \n \n19 June 2009\n\nARTISAN (UK) PLC\n\nBANKING FACILITIES RE-STRUCTURED\n\nLondon, 19 June 2009: Artisan (UK) plc ('Artisan' or 'the Group'), the AIM listed house builder, commercial property developer and property investor, announces re-structured banking facilities.\n\nWe can announce today the renegotiation of the Group's Revolving Credit loan facilities has been successfully completed, with term of loan extended from 1 July 2010 to 1 July 2011 and the covenants restructured.\n\nThe secured revolving credit bank loan provides the funding for the Group's development activities\n\nKey points to note are\n\n\nOverall facility now £25m net, (was £30m net)\n\n\nThe facility is split between LIBOR and base rate sub facilties\n\n\nOffset allowed against credit balances\n\n\nInterest now at a 2.25% over LIBOR and/or 3.25% over base \n\n\nTerm extended from 1 July 2010 to 1 July 2011\n\n\nLoan to cost reduced to 70% (was 75%) for existing residential WIP\n\n\nLoan to cost reduced to 65% (was 70%) for new residential WIP\n\n\nCommercial funding remains at 60% loan to cost\n\n\nInterest to profit covenant removed\n\n\nA new cash receipts to cash payments ratio of 1 : 1 introduced\n\n\nOther covenants set in line with the forecasts produced by management\n\n\n\nThe Group also has a £4.46m investment property facility which expires on 30 June 2012. The Loan to Value funding is to be reduced to 70% (was 85%). This loan is provided to fund the Group's investment properties and the drawn balance of £4.3m will be shortly reduced to £3.17m to reflect the reduction in carrying value of the investment properties as reflected in the 31 December 2008 Interim Accounts and the reduced funding percentage. \n\nThe cash head room arising from the ability to borrow greater funds than required for working capital has allowed the group to fund the trading losses that have been incurred and provide resources going forward in the difficult trading conditions that continue to pervade in the market. The funding has also allowed the principal debt funder to reduce debt levels and funding ratios to levels suitable for the current market conditions.\n\nFor further information please contact:\n\n\n\n\n\nArtisan (UK) plc\nChris Musselle\n\n\n\n\nChief Executive \n\n...