28 Oct 2008 15:11
DCD Media plc ("DCD" or "the Company")
Re Convertible Loan
DCD Media plc is pleased to announce that further to a put option contained within its convertible loan note instrument of December 2005 for partial repayment of this loan on 30 September 2008, it yesterday redeemed £1.7m principal amount of this convertible loan, with payment of the remainder of the December 2005 loan notes now totaling £5.9m, plus the £4m convertible loan dated August 2007, deferred until no earlier than 22 December 2008. DCD funded £1.5m of this redemption from the funds DCD announced earlier in September that it was holding for debt repayment purposes from a library licence deal. It is the policy of the Company to refinance its loans periodically, and steps towards this are in advanced progress, but in any case the Company and the note holders have agreed that they will hold good faith negotiations to review funding options for the coming year. The note holders have already confirmed that in the event of early repayment no penalties will arise, and that in the event of the lenders taking up their option to redeem on 22 December 2008 and the company defaulting within 30 days a 10 per cent. penalty will be added to the outstanding loan principal along with a 2 per cent. increase in the interest rate, but no other penalty in relation to that default. All the remaining convertible loan notes of DCD also are now convertible into DCD Ordinary Shares at the lower of 28 pence and the mid-market share price on a week-to-week basis. The Directors of DCD welcome the flexibility that its note holders are showing in the current market environment, which continues a history of consistent support for the Company.
DCD further announces that it is due to release its Preliminary Results for the full year to 30 June 2008 on 18 November 2008. The Directors of DCD are therefore currently in a close period and are unable to buy shares in the Company.
28 October 2008
Enquiries:
Chris Hunt, Chief Executive
DCD Media Plc
Tel. 020 7297 8000
Tom Price / Jeremy Ellis
Evolution Securities
Tel. 020 7071 4300