Business
Financing Arrangements
Financing Arrangements.
About this update from Restore Plc
[{"type":"text","content":"\n RNS Number : 5215E Mavinwood PLC 22 December 2009 \n \n\nMavinwood plc (\"Mavinwood\" or the \"Company\")\n\nFinancing Arrangements\n\nThe Company announced on 30 September 2009 that the Company's facility agreement with Lloyds TSB plc (\"Lloyds\") had been amended such that a minimum equity injection was required by 31 December 2009 of an amount equal to: \n\n\nthe existing subordinated working capital facilities of £5.1 million entered into with Geraldton (including rolled-up interest) plus \n\n\nthe previously announced fee of £0.9 million payable to Geraldton in connection with their equity underwriting commitment.\n\n\n\nIt has been agreed with Lloyds that this subordinated working capital facility will remain in place until such time there is an equity injection to replace it. \nThe Company announced on 29 July 2009 that Geraldton Services, Inc (\"Geraldton\") had committed to invest an additional sum of up to £4 million before 31 January 2009 if the ratio of net debt to EBITDA on 31 December 2009 as tested under the Company's facility agreement with Lloyds TSB plc exceeded an agreed level. This was reiterated in the Company's announcement on 30 September 2009 when Geraldton provided the subordinated working capital facilities to the Company referred to above.\nMavinwood announces that Geraldton has now entered into a further loan agreement with Geraldton pursuant to which Geraldton will provide an additional £4 million in the form of subordinated working capital facilities at a coupon of 10%. As with the existing Geraldton facilities this facility is due to be repaid on 1 August 2012 with interest to be compounded annually and paid on the date of repayment of the loan. Mavinwood has agreed to grant a second charge in respect of the £4 million Geraldton facility ranking behind Lloyds' existing security and subject to Lloyds' approval. The provision of this facility ensures compliance with year-end covenants under the terms of the Company's facility agreement with Lloyds and reflects Geraldton's long-term commitment to the Company. The previous variation in arrangements with Geraldton, including Geraldton's obligation to provide a further £4 million investment,&...