Last checked at 2 Dec 2021 07:00
2nd December 2021
Orchard Funding Group PLC
Acqusition of Orchard Bond Finance PLC
Orchard Funding Group PLC ("Orchard", the "Group" or "Company"), the finance group which specialises in insurance premium finance and the professions funding market, announces that it has acquired Orchard Bond Finance PLC ("Orchard Bond Finance") (the "Acquisition").
Orchard Bond Finance is a dormant shell company which was acquired for nominal consideration from the Group's CEO and Orchard Bond Finance's sole shareholder, Ravi Takhar. The Acquisition does not constitute a related party transaction pursuant to AIM Rule 13.
Orchard intends to utilise Orchard Bond Finance as a vehicle to raise liquidity for the Group through a potential listed bond issue in 2022 (the "Bond Issue"). Should the Board resolve to proceed with the Bond Issue, it is proposed that the bonds would have a five year life, pay a target annual coupon of circa 6 per cent. and be partially guaranteed by the Company to up a value of 10 per cent. of the principal value of the bonds. Subject to completion of the Bond Issue, the Group intend to apply for the bonds to be admitted to the FCA's Official List and admitted to trading on the London Stock Exchange's Order Book for Fixed Income Securities market.
The timing and launch of the proposed Bond Issue will be subject, amongst other factors, to prevailing market conditions. Further updates will be made in due course.
For further information, please contact:
Orchard Funding Group PLC +44 (0)1582 346 248
Ravi Takhar, Chief Executive Officer
Liberum (Nomad and Broker) +44 (0)20 3100 2222
Neil Patel
Lauren Kettle
For Investor Relations please go to: www.orchardfundinggroupplc.com This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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