Business
Loan Agreement
Loan Agreement.
About this update from Michelmersh Brick Holdings Plc
[{"type":"text","content":"\n Michelmersh Brick Holdings PLC\n23 May 2007\n\nFor release at 7.00am 23 May 2007\n\n\n\n\n\n Michelmersh Brick Holdings plc ('Michelmersh')\n\n Loan by W E Black Limited\n\n\n\n\n\nMichelmersh announced on 21 May 2007 that it had acquired a total of 9,547,869\nshares in Baggeridge Brick PLC ('Baggeridge') representing 23.12 per cent of the\nissued share capital of Baggeridge.\n\n\n\nMichelmersh also confirmed on 17 May 2007 that it was considering its position\nwith respect to its shareholding, including the possibility of making an offer\nfor the entire issued share capital of Baggeridge and that such an offer would\ncomprise a full cash offer with a partial share alternative. Michelmersh is\ncontinuing to seek support for a possible cash offer.\n\n\n\nAs part of the financing of the Baggeridge share purchases, and any possible\noffer for Baggeridge, Michelmersh announces that it has entered into a loan\nagreement with W.E. Black Limited ('W.E. Black') dated 22 May 2007. W.E. Black\nis a company in which Mr Eric Gadsden, Chairman of Michelmersh, has a\nsignificant beneficial interest and that consequently this constitutes a related\nparty transaction within the meaning of the AIM Rules. The loan agreement\nformalises the terms upon which the Company received an initial loan of £11.5\nmillion from W.E. Black on 16 April 2007.\n\n\n\nThe loan is for £16.5 million, with an interest rate equivalent to that\nattaching to the Company's existing term loan with Barclays Bank Limited\n(currently 7.0 per cent). The loan is repayable at will by Michelmersh and,\nsave in certain circumstances of default, on 90 days' notice from W.E. Black.\nW.E. Black has also confirmed that in the event that an offer for Baggeridge\nwere subsequently made by Michelmersh it would be prepared to make further\nfacilities available to Michelmersh as part of the financing of such an offer.\n\n\n\nThe directors of Michelmersh (with the exception of Mr Gadsden who has abstained\nby reason of his association with W.E. Black), having consulted with Charles\nStanley Securities as the nominated adviser to Michelmersh, consider that the\nterms of the loan to Michelmersh from W.E. Black are fair and reasonable insofar\nas Michelmersh's shareholders are concerned.\n\n\n\nEnquiries:\n\n\nCharles Stanley Securities 020 7149 6000\nRussell Cook, Anthony Noakes\n\n\nTa...