2 Oct 2013 07:00
2 October 2013
ALBEMARLE & BOND HOLDINGS PLC
Update on financing
Albemarle & Bond Holdings PLC ("Albemarle & Bond" or the "Company") today announces an update in relation to its financing.As announced on 30 September 2013, the Company has been in discussion with its largest shareholder, EZCORP International, Inc. ("EZCORP") with respect to underwriting an equity raise of approximately £35 million and negotiating a revised banking package.
Unfortunately, the Company has not been able to conclude these negotiations to the satisfaction of the Board, which in the case of the equity underwriting have taken place over the last four months.
The Company has therefore signed the agreed terms of a deferral of the 30 September 2013 covenant test until 30 October 2013 with its lending banks and is now focussing its efforts on constructive discussions with the banks to explore all possible options to remedy potential covenant breaches later in the current financial year.
The deferral agreement will also lead to the appointment of a Chief Restructuring Officer to the Board by 10 October 2013. As at 30 September 2013, net indebtedness was circa £51 million. The terms of the deferral agreement cancel undrawn commitments under the Company's lending facility, reducing the facility from £65 million to £53.5 million.
Further updates on these discussions will be made as soon as is appropriate and the timetable for announcing the Company's final results for its financial year ended 30 June 2013 will be delayed whilst these discussions are underway.
Enquiries:
Albemarle & Bond Holdings PLC Greville Nicholls - Interim Executive Chairman 0118 955 8100
Liam Moran - Chief Financial Officer
Canaccord Genuity 020 7523 8350Piers Coombs / Bruce Garrow / Lucy Tilley
MHP Communications 020 3128 8100
Reg Hoare / Katie Hunt / Simon Hockridge