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LONDON (Alliance News) - Coalfield Resources PLC Thursday said Haworth Estates Property Group Ltd has completed the refinancing of its bank facilities after Coalfield agreed a takeover deal with the company on Tuesday.
On Tuesday, Coalfield agreed to acquire the 75.1% stake in Haworth that it did not already own by paying the Pension Protection Fund GBP97 million in cash and issuing it with 730.7 million new Coalfield shares to control 100% of Haworth.
Coalfield said that once the acquisition is complete, it plans to change its name to Harworth Group PLC to reflect the change in the company's underlying operations.
On Thursday, Haworth completed refinancing its facilities by securing a new GBP65 million revolving loan facility with the Royal Bank of Scotland Group PLC, which will initially be used to repay the company's existing borrowing facilities with Lloyds Bank PLC and Barclays Bank PLC.
The new GBP65 million facility is "on more appropriate commercial terms for a successful property business," said Coalfield.
Haworth Finance Director Mike Richardson, who will become Coalfield's chief financial officer after the takeover bid is completed, said "the new facility with the Royal Bank of Scotland creates a senior financing platform to enable the Harworth Estates business to drive further shareholder value from both its existing real estate portfolio and the wider real estate markets."
Coalfield shares were up 1.6% to 8.20 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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