SVR.L Regulatory News (SVR)

6 Oct 2008 15:43



6 October 2008

ServicePower Technologies PLC

("ServicePower" or the "Company")

Issue of £1,023,896 of secured convertible loan notes

ServicePower (AIM: SVR) announces that following the admission to trading on AIM of its ordinary shares of 1 pence each on 26th September, 2008 and the completion of its £5 million equity fund raising, the Company has elected to repay its £1m loan facility dated 9th June, 2008 (the "Loan Facility") with Herald Ventures II Limited Partnership, Herald Investment Trust plc, BFL&P LLP and The Alphagen Volantis Fund Limited (the "Lenders") through the issuance of £1,023,896 secured convertible loan notes divided into 20,477,920 notes having a nominal value of 5 pence each (the "Convertible Loan Notes"). Each of the Lenders has been issued with an aggregate of 5,119,480 Convertible Loan Notes having an aggregate nominal amount of £255,974. The Loan Facility has been repaid in accordance with its terms.

The Convertible Loan Notes accrue interest at 8 per cent. per annum compounded on 30 June and 31 December of each year and are secured over the Company's assets in priority to any other charge that ServicePower currently has or grants in the future. Unless previously converted or redeemed earlier, the Convertible Loan Notes are redeemable on 29th September 2016 (the "Maturity Date"). Each of the Lenders may elect to convert or redeem any of its Convertible Loan Notes at any time prior to the Maturity Date. On conversion, the principal of and accrued interest on each of the Convertible Loan Notes the subject of the conversion converts into ordinary shares in ServicePower at a conversion price of 5 pence per ordinary share (the "Conversion Price"). On redemption, each the principal of and accrued interest on each of the Convertible Loan Notes is repayable in cash. If no earlier election has been made to convert or redeem them then all outstanding Convertible Loan Notes will be converted at the Conversion Price. The Convertible Loan Notes are subject to certain events of default conventional in instruments of this nature. In the event of default the Convertible Loan Notes are subject to immediate redemption.

The Convertible Loan Notes are transferrable in integral multiples of £50.

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About SERVICEPower

SERVICEPower, currently publicly traded on the AIM market operated by the London Stock Exchange (AIM:SVR), allows companies to locate their employed field resources in the right geography, ensure they have the right mix of skills, and outside this geography create a network of independent, authorised service contractors whose costs are efficiently managed by our sophisticated warranty management software. The schedules and routes for both the employed field resources and the independent servicers are optimised by SERVICEPower's technology to ensure the right balance between the cost of operations and ensuring customers receive a superior service experience.