Artisanal Sp.co Regulatory News (ART)

19 Jun 2009 13:16



19 June 2009

ARTISAN (UK) PLC

BANKING FACILITIES RE-STRUCTURED

London, 19 June 2009: Artisan (UK) plc ("Artisan" or "the Group"), the AIM listed house builder, commercial property developer and property investor, announces re-structured banking facilities.

We can announce today the renegotiation of the Group's Revolving Credit loan facilities has been successfully completed, with term of loan extended from 1 July 2010 to 1 July 2011 and the covenants restructured.

The secured revolving credit bank loan provides the funding for the Group's development activities

Key points to note are

The Group also has a £4.46m investment property facility which expires on 30 June 2012. The Loan to Value funding is to be reduced to 70% (was 85%). This loan is provided to fund the Group's investment properties and the drawn balance of £4.3m will be shortly reduced to £3.17m to reflect the reduction in carrying value of the investment properties as reflected in the 31 December 2008 Interim Accounts and the reduced funding percentage. 

The cash head room arising from the ability to borrow greater funds than required for working capital has allowed the group to fund the trading losses that have been incurred and provide resources going forward in the difficult trading conditions that continue to pervade in the market. The funding has also allowed the principal debt funder to reduce debt levels and funding ratios to levels suitable for the current market conditions.

For further information please contact:

Company website: www.artisan-plc.co.uk