ALB.L Regulatory News (ALB)

18 Dec 2007 12:09

Albany Capital PLC18 December 2007 ALBANY CAPITAL PLC ("the Company") 18 December 2007 Issue of Redeemable Convertible Unsecured Loan Notes 2011 The directors of Albany Capital (AIM : ALB), the investment company are pleasedto announce that the Company has agreed a £6m facility for further investmentpurposes. The Company will issue £6m Redeemable Convertible Unsecured Loan Notes 2011 ("Loan Notes") to Westminster Enterprises Limited ("the Noteholder"). At theoption of the Company, the facility can be drawn down at any time before 16December 2009 and if not converted will be redeemed on 16 December 2011. Afterdrawdown, the Loan Notes are convertible at the option of the Noteholder intoOrdinary Shares at 2.85 pence per share, a premium of 30% to the mid price pershare at the end of trading on 17 December 2007. In the event of drawdown andconversion of the entire facility, Albany Capital will issue 210,526,315ordinary shares to the Noteholder. As a precondition to any drawdown, AlbanyCapital will seek a waiver from the Takeover Panel in relation to theapplication of Rule 9 of the Code since the Noteholder will have an interest in445,359,648 shares representing 44.56% of the issued share capital subject todrawdown and conversion of the facility. In the event of a redemption, theloan notes will attract interest at 6% per annum payable on redemption. Loannotes redeemed or remaining undrawn down by 16 December 2009 will attractwarrant cover of 30% of the value of the unused facility or redeemed amount. Thestrike price for any warrants issued will be 2.85 pence per share. Related Party Transaction The issue is a related party transaction under the AIM Rules as it is atransaction with a substantial shareholder. Westminster Enterprises Limitedcurrently holds 29.8% of the ordinary share capital of the Company. The Directors consider, having consulted with its nominated adviser, that theterms of the transaction are fair and reasonable insofar as its shareholders areconcerned. Albany Capital John McLean Chairman 0203 178 4506 WH Ireland James Joyce/ Sarang Shah 020 7220 1666 This information is provided by RNS The company news service from the London Stock Exchange