27 Apr 2011 07:00
FIRST ARTIST CORPORATION PLC
("First Artist" or "the Company" or "the Group")
New Facility
Posting of Circular
Notice of General Meeting
First Artist Corporation plc (AIM: FAN) is pleased to announce that it has reached an agreement to replace the existing bank facility with a £14,800,000 revolving credit facility (the "New Facility"). The terms of the New Facility are preferential to the charges currently being incurred under the existing facility.
The Company's interest charges will be reduced to 3.5 per cent. over LIBOR for the first 12 months rising to 4 per cent. over LIBOR for the second 12 months. The Company is currently paying a range of interest charges for its debt including 10 per cent. over LIBOR for the mezzanine facility.
In the course of finalizing The New Facility it has come to the attention of the Board that the Company has exceeded the limits on the borrowings power available to the Company contained within its Articles of Association.
The Articles of Association currently provide that the aggregate outstanding borrowings of the Company and its subsidiaries shall not at any time exceed an amount equal to three times the Adjusted Capital and Reserves (as defined in Article 114 of the Articles of Association).
The Board is proposing to remove the limits on the borrowing powers contained in its Articles of Association and seek ratification of the Company's continued entry into the existing facility which automatically novates to the New Facility. Both resolutions are required to be approved as a condition of entering into the New Facility. Thereafter the Company would be able to draw down against the New Facility with immediate effect.
The Company has posted to shareholders a Notice of General Meeting at which, inter alia, there will be proposed a special resolution, which removes the limits on the Company's borrowing powers contained in its Articles of Association.
The General Meeting of First Artist will be held at the offices of Seymour Pierce Limited, 20 Old Bailey, London EC4M 7EN on Tuesday 17 May 2011 at 11.30 am. The Circular will shortly be available on the Company's website at www.firstartist.com.
Commenting on today's announcement, Jeremy Barbera, Chief Executive of First Artist said: "Today marks another milestone in our restructuring of First Artist as we have reduced bank debt and negotiated a new multi-year revolving credit facility at considerably lower cost to the Company. We appreciate the ongoing support of Allied Irish Bank and look forward to benefitting from the new credit facility beginning on May 17th directly after the General Meeting."
Enquiries:
First Artist Corporation Plc
Jeremy Barbera/David Stoller/ Shirley Stapleton Tel: +44 20 79930000
Seymour Pierce Limited
Stewart Dickson /Tom Sheldon Tel: +44 20 71078000
Bishopsgate Communications Limited
Duncan McCormick Tel: +44 20 75623350