CIHL.L Regulatory News (CIHL)

2 Apr 2007 07:03

BB Holdings Ltd02 April 2007 BB Holdings Limited ("BB Holdings" or the "Company") Placement of US$50,000,000Loan Notes and 7,692,308 Warrants to subscribe for new ordinary shares in theCompany at US$6.50 Belize City, Belize, April 2, 2007. The Directors of BB Holdings (London: BBHL)today announce a placement of US$50,000,000 10 per cent. fixed rate, unsecured,loan notes with a maturity date of April 23, 2013 (the "Loan Notes"), togetherwith 7,692,308 warrants to subscribe for new ordinary shares of the Company atan exercise price of US$6.50 per new ordinary share, until April 23, 2013 (the "Warrants"). The Loan Notes and Warrants have been offered to placees, each of whom is anexisting investor in BB Holdings. Lord Ashcroft, KCMG has undertaken to take uphis full placing amount of Loan Notes amounting to US$38,539,000 together withthe 5,929,007 corresponding Warrants. Lord Ashcroft, KCMG has further undertakento subscribe for himself, or procure others to subscribe, for any Loan Notes andcorresponding Warrants which are not taken up by other placees, thus ensuringthe entire issue of the Loan Notes and Warrants will be taken up. The Placing is expected to raise US$50,000,000 gross of fees and expenses. BBHLis actively pursuing a strategy to increase its US dollar denominated earningsin the Caribbean region and in particular in the Turks and Caicos Islands wherethe Directors consider that there are significant opportunities to utilise theproceeds of the Placing in an economy that is experiencing rapid growth in thetourism and property development sectors. In the first instance, it isanticipated that the proceeds of the Placing will be used by BBHL to furthercapitalize The Belize Bank (Turks and Caicos) Limited in order to: (a) reinforce its operating bank as a leading lending institution in the Turksand Caicos Islands; (b) increase the range of financial services offered by the operating bank; and (c) enhance its market share of certain financial products and services in theregion. BBHL may also, in due course, review other opportunities to expand its financialservices business to other parts of the Caribbean or Central America. Application will be made for the Warrants, but not the Loan Notes, to beadmitted to trading on AIM, and it is expected that trading in the Warrants willcommence on April 23, 2007. The placing of both the Loan Notes and the Warrantsis not conditional on admission to trading on AIM. The Company has also published an admission document for the Warrants, which isavailable free of charge to the public at the registered office of CenkosSecurities plc, 6.7.8 Tokenhouse Yard, London EC2R 7AS, during normal businesshours on any weekday (Saturday, Sunday and public holidays excepted), up untilone month from the date of Admission. Contacts: BB Holdings Limited Makinson Cowell Cenkos Securities plcBelize +501 227 7178 +1 (212) 994 9044 +44 (0)20 7397 8900UK +44 (0)20 7248 6700 This information is provided by RNS The company news service from the London Stock Exchange