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23 Jan 2013 13:31
23 January 2013
Flying Brands Limited (the "Company" or the "Group")
Refinancing of Flowers Direct deferred consideration payments and Board changes
The Board wishes to announce that Retreat Nurseries Limited ("RNL") (formerly Flying Flowers (Jersey) Limited), a subsidiary of the Company, has arranged new financing for the £0.75m deferred consideration payment due to be paid under the Flowers Direct transaction to Palatine Private Equity ("Palatine").
A loan of £1.0m has been agreed between RNL and the Company (as guarantor of RNL's obligations) and Acorn Finance Limited ("Facility"). The balance of the loan after fees, £0.24m, will be used for working capital purposes.
The two existing charges over the freehold of Retreat Farm held by Palatine and Barclays Private Clients International Limited ("Barclays") have now been discharged. The new Facility is secured by a charge over the freehold of Retreat Farm and is repayable in full on 18 January 2015.
As announced on 31 August 2012, Tim Trotter has stepped down as Chairman of the Company with effect from 23 January 2013 and Paul Davidson has been appointed as acting Chairman. It has been agreed that Stephen Cook will work out his notice period of 6 months as Chief Executive and the composition of the Board will be reviewed further when the future direction of the Company has been resolved. The Company is continuing with discussions about the future of Retreat Farm and will keep shareholders informed of progress.
For further information please contact:
Smithfield Consultants 020 7360 4900
John Kiely
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