Business
Loan Agreements Update
Loan Agreements Update.
About this update from Dillistone Group Plc
[{"type":"text","content":"\n \nRNS Number : 2885B Dillistone Group PLC 06 June 2019 \n\n \nDillistone Group Plc\n(\"Dillistone\" or the \"Group\")\nLoan Agreements Update\n \nThe Board of Dillistone Group Plc, the AIM quoted supplier of software for the international recruitment industry, is pleased to announce an extension to its loan agreements.\nThe Group entered into a £500,000 2 year bank loan facility (the \"bank loan\") with HSBC on 5 June 2019 to support investment in its restructuring and to provide additional working capital. \nThe bank loan, which is repayable over its term, with early repayment rights without penalty, bears interest at 3.25% over the Bank of England base rate.\nThe bank loan ranks ahead of the £400,000 8.15% convertible loan notes (\"loan notes\") issued on 28 September 2017 for capital repayment. Accordingly, the loan note holders, comprising various directors and other persons discharging managerial responsibilities as announced on 28 September 2017, have signed an agreement to postpone repayment of the loan notes until the bank Loan has been repaid. Quarterly interest payments will however continue to be made on the loan notes until repayment.\nThe amendment to the loan note terms constitutes a related party transaction under AIM Rule 13. Alistair Milne, who is not interested in the loan notes and therefore represents an independent Director for this purpose, having consulted with WH Ireland, the Company's nominated advisor, considers that the amendments to the Loan Notes are fair and reasonable in so far as the Dillistone shareholders are concerned.\nCommenting on the bank loan, Jason Starr, Chief Executive at Dillistone, said:\n\"The merging of our London team into the newly enlarged Basingstoke office will allow us to deliver a better service to our clients and a better return to our investors. Our plans have been well received and the process has started very positively. The new loan ensures that we are well positioned to fund the restructuring without having to call on our shareholders. We are excited by the potential for the business.\" \n \nThis announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.\n \nEnquiries:\n \n\n\n\n\nDillistone Group Plc\n\n\n \n\n\n \n\n\n\n\nMike Love\n\n\nChairman\n\n\nV...