RNS just released - Good news16 Nov 2009 11:57
API Group plc - New 3.5 year Banking Facilities
TIDMAPI
16th November 2009
API Group plc
New 3.5 Year Banking Facilities
API Group plc (LSE : API, the "Group"), the specialist foils and
packaging materials producer, today announces that it has agreed
principal terms of a new banking facilities agreement with its main
lender, Barclays Bank plc (the "Bank").
The agreement, which is expected to be signed in the next two weeks,
provides the Group with committed funds to meet its foreseeable
requirements until July 2013, a period of just over 3.5 years.
The new facility makes available a term loan of GBP14.4m at an interest
rate of 4.0% to 4.5% over LIBOR. Additional interest of 8% is
payable on a roll up basis at the end of the term on GBP3.65m of the
debt. Repayments on the GBP7.0m amortising portion are scheduled from
October 2010.
The Group will also continue to be provided with a Multi Option
overdraft facility of GBP3.5m, renewable annually.
In lieu of arrangement fees and other costs, the Group has agreed to
grant the Bank a warrant to subscribe for 5% of its issued share
capital at the nominal price of 1 pence per share, exercisable at any
time up to the eighth anniversary of the agreement.
Commenting on the renewed facilities, Richard Wright, Non Executive
Chairman said :
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