CIHL.L Regulatory News (CIHL)

11 Oct 2007 15:52

BB Holdings Ltd11 October 2007 BB Holdings Limited ("BB Holdings" or the "Company") placing of US$50,000,000loan notes and 11,094,442 warrants to subscribe for new ordinary shares of theCompany at an exercise price of US$6.50 per new ordinary share Belize City, Belize, October 11, 2007. The directors of BB Holdings (London:BBHL) today announce the placing of US$50,000,000 10 per cent. Series 2 fixedrate, unsecured, loan notes with a maturity date of November 2, 2014 (the "LoanNotes"), together with 11,094,442 warrants to subscribe for new ordinary sharesof the Company at an exercise price of US$6.50 per new ordinary share, untilAugust 2, 2014 (the "Warrants") (the "Placing"). The Loan Notes and Warrants have been offered to certain existing non-USshareholders in BB Holdings Limited. Lord Ashcroft, KCMG has undertaken to takeup Loan Notes amounting to US$37,939,000 together with the 8,418,244corresponding Warrants. Lord Ashcroft has further undertaken to subscribe forhimself, or procure others to subscribe, for any Loan Notes and correspondingWarrants which are not taken up by other placees, thus ensuring the entire issueof the Loan Notes and Warrants will be taken up. The Placing is expected to raise US$50,000,000 (US$49,700,000 net of expenses). BB Holdings is actively pursuing a strategy to increase its US dollardenominated earnings in the Caribbean region and in particular in the Turks andCaicos Islands where the directors consider that there are significantopportunities to utilise the proceeds of the Placing in an economy that isexperiencing rapid growth in the tourism and property development sectors. In pursuit of this strategy, BB Holdings raised new capital in April 2007through the placing of US$50,000,000 10 per cent. fixed rate, unsecured, loannotes with a maturity date of April 23, 2013, together with warrants tosubscribe for new ordinary shares of the Company at an exercise price of US$6.50per new ordinary share. This was fully subscribed and the proceeds were used tocapitalise The Belize Bank (Turks and Caicos) Limited to fund lending in thenormal course of business principally in the tourism and property developmentsectors. The demand for new lending and the availability of opportunities for expansion,particularly in the Turks and Caicos Islands, has continued and has created theneed for yet further funding sources. In the first instance, it is anticipated that the proceeds of the Placing willbe used by BB Holdings to further capitalise The Belize Bank (Turks and Caicos)Limited in order to: (a) reinforce and expand its operating bank as a leading lending institution in the Turks and Caicos Islands; (b) increase the range of other financial services offered by the operating bank; and (c) enhance its market share of certain financial products and services in the region. 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 November 2, 2007. The Placing of the Loan Notes and the Warrants isnot conditional on admission of the Warrants 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, United Kingdom, and atthe offices of the Company at 3rd Floor, 212 North Front Street, PO Box 1764,Belize City, Belize, Central America, during normal business hours on anyweekday (Saturday, Sunday and public holidays excepted), up until one month fromthe 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