LONDON (Alliance News) - Rangers International Football Club PLC Tuesday said it has begun satisfying the conditions for the drawdown of the second GBP5 million tranche of the GBP10 million credit facility from Sports Direct International PLC.
On January 27, Rangers entered into the agreement with Sports Direct for the credit facility, a deal that meant Sports Direct founder Mike Ashley would no longer have a direct loan to the club.
The facility was in two tranches, with the first GBP5 million drawndown immediately to cover working capital and to repay the loans provided by MASH Holdings Ltd, Ashley's investment vehicle.
Under the first tranche, Rangers transferred 26% of its share capital of its Rangers Retail Ltd business, a joint venture with Sports Direct, to the retailer for the duration of the facility, to be transferred back once all outstanding sums under the loan are repaid.
The second GBP5 million tranche will be used by the club, if required, for working capital purposes and is subject to due diligence by Sports Direct before any drawdown can be made.
Rangers shares closed down 1.4% to 35.50 pence per share on Tuesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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