11 Jan 2012 07:00
11 January 2012
Cosalt plc
("Cosalt" or "the Company")
Funding update and Directorate changes
Further to Oval (2245) Limited's ("Oval") offer for the issued share capital of Cosalt being declared wholly unconditional on 9 January 2012, the board of Cosalt confirms that it has agreed revised arrangements for the provision of borrowing facilities to the Company by Oval. The Company's previous short-term £5 million borrowing facility with Oval, which expired yesterday, has now been replaced with a new £5 million unsecured facility. The Company will use this facility to fund working capital and capital expenditure. Under the terms of the new facility, any amounts outstanding will fall due for repayment on the earliest to occur of (i) 30 June 2012; (ii) the date of any refinancing of any nature of the Company's bank facilities (being a refinancing, redemption or cancellation in full of all such facilities) with HSBC and RBS, the Company's senior lenders; or (iii) the date the facilities must be repaid on certain events of default.
The board also confirms that, upon Oval's offer for the Company having been declared wholly unconditional, Ken Murray, Maurice White and Yarom Ophir resigned as non-executive directors with effect from 9 January 2011. The board now comprises David Ross, Non-executive Chairman and Trevor Sands, Chief Executive Officer.
Mr Ross said: "I would like to thank Ken, Maurice and Yarom for their contribution to the Company over many years and wish them all the best for the future".
Enquiries:
Cosalt plc Trevor Sands, Chief Executive Officer | Tel: +44 (0) 1472 725560 |
Evolution Securities Limited Joanne Lake / Peter Steel | Tel: +44 (0) 113 2431619 |
Cardew Group Tim Robertson / Sophie Leigh Pemberton | Tel: +44 (0) 207 930 0777 |