Rns...24 Jun 2010 08:11
RNS Number : 1557O
Speymill PLC
24 June 2010

24 June 2010 Speymill plc ("Speymill" or the "Company") Related Party Transaction Speymill (AIM: SYG), the property services business specialising in real estate investments, investment management services and construction operations announces that, yesterday, Jim Mellon, a director and substantial shareholder of Speymill, together with Burnbrae Limited ("Facility A Lenders"), and Bob MacDonald, a director and significant shareholder of Speymill ("Facility B Lender") (together the "Lenders"), entered into an agreement with the Company to extend the loan of £3.3 million made to the Company in January 2009 (the "Original Loan") and to roll the full amount of principal, accrued interest and facility fees from the Original Loan, together with an additional amount of £3.06 million, aggregate, into a new loan facility (the "New Facility"). The terms of the New Facility are as follows: Level of commitment from the Facility A Lenders: £5,461,995 Level of commitment from the Facility B Lender: £306,042 Term: Matures on 31 July 2011 Interest rate: 12% per annum which will accrue daily and compounded on the 31 December in each calendar year until the New Facility is converted. Interest is payable in arrears on the date of repayment. Conversion: The Lenders will have the right, but not the obligation, to convert some or all of the principal and amounts accrued under the New Facility to ordinary share capital subject to regulatory approval. The conversion price will be 6p per share. Facility Fee: On drawdown of an amount of the New Facility (an "Advance"), an amount of 3% of the amount of the Advance will be added to the Advance and form part of the principal repayable on the date of repayment, subject to a maximum aggregate fee of £91,758.21. The additional funds will be used to assist the Company with its working capital requirements. Mr Mellon (and Burnbrae Limited, a company which is indirectly wholly owned by the trustee of a settlement under which Mr Mellon has a life interest.) and Mr MacDonald are considered to be related parties to the Company and, therefore, the New Loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Mr Mellon, Mr MacDonald and Denham Eke, who is also Managing Director of Burnbrae Limited), having consulted with the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, consider that the terms of the t
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