Business
Early redemption of outstanding amortising bonds
Early redemption of outstanding amortising bonds.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 6101U CLS Holdings PLC 25 October 2017 \n\nCLS Holdings plc\n(\"CLS\", the \"Company\", the \"Group\")\n \nEarly redemption of outstanding\n10.765% Amortising Bonds due 2025\n \n \nCLS Holdings plc announces that its subsidiary company has today given formal notice to redeem early its outstanding £23.5 million 10.765% Amortising Bonds due 2025 (the \"Amortising Bonds\"). The Amortising Bonds will be redeemed in full on 4 December 2017 at a redemption price of £141.112 per £100 principal amount of bonds outstanding on the date of redemption, together with accrued interest, equating to a total payment of £33.1 million plus accrued interest. The payment will be financed from existing cash resources of the Group, and will reduce the Group's tax payable in 2017 by £1.8 million.\n \nThe Amortising Bonds comprise the only remaining debt secured against New Printing House Square, 214/236, Gray's Inn Road, WC1, representing a loan to value of less than 20%; this property is expected to be refinanced in 2018.\n \nOn redemption of the Amortising Bonds, the Group's pro forma weighted average cost of debt will fall to 2.70% (30 June 2017: 2.94%) and annual cash flow from operating activities will increase by £2.0 million.\n \nThe effect of redeeming the Amortising Bonds will be accretive to EPRA earnings initially by 0.5 pence per share and EPRA net asset value will fall by 0.7%, or 1.9 pence per share.\n \nFredrik Widlund, Chief Executive Officer of CLS, said: \n \n\"The Amortising Bonds comprise the last remaining expensive legacy debt of the Group. By redeeming the Bonds the weighted average cost of debt becomes the lowest in the Group's history. Further, we will be in a position to refinance New Printing House Square, adding around £50 million net to liquid resources whilst still reducing the overall annual interest payable of the Group and, in enhancing earnings per share, underpinning the dividend.\"\n \nFor further information, please contact:\n \nCLS Holdings plc www.clsholdings.com \n+44 (0)20 7582 7766\n\nFredrik Widlund, Chief Executive Officer\nJohn Whiteley, Chief Financial Officer\n \nLiberum Capital Limited\n+44 (0)20 3100 2222\nRichard Crawley\nJamie Richards\nPanmure Gordon (UK)...