LONDON (Alliance News) - Private & Commercial Finance Group PLC Monday said it has conditionally raised GBP4.07 million through its proposed issue of convertible unsecured 2016 loan notes, which will complete a GBP10 million fundraising announced in October 2012.
The loan notes have an interest rate of 6% per annum, payable in equal half-yearly installments. The fundraising includes PCFG's exercise of a GBP3 million put option with the Bermuda Commercial Bank Limited, which expires on 16 October,as well as the further issue of GBP1.07 million of convertible unsecured loan notes to BCB and other investors.
BCB subscribed for GBP920,000 of the GBP1.07 million 2016 unsecured loan notes and the balance has been issued to other existing institutional holders.
The issue of the notes is conditional upon the admission by the UK Listing Authority to the standard listing segment of the Official List and by the London Stock Exchange to its main market
The terms state that amounts over GBP1 million can be converted into ordinary shares at any time, otherwise, conversion is twice in any year, in March and September, at a rate of one ordinary share per 8.5 pence nominal of the 2016 convertible unsecured loan notes.
Private & Commercial said it would use GBP2.99 million of the proceeds to repay its 8% 2013 convertible unsecured loan notes and the 10% 2013 convertible unsecured loan notes, both of which mature on September 30. The remaining GBP1.08 million will be used to fund the firm's future growth.
Private & Commercial said that BCB has an interest in GBP8.5 million in value of convertible unsecured loan notes, with an interest in 15.6 million ordinary shares, or 29.37%, of the company's current issued share capital.
Private & Commercial Finance shares were Monday quoted at 9 pence, down 0.75 pence, or 7.7%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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