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28 Nov 2011 07:00
Date: | 28 November 2011 |
On behalf of: | Travelzest plc ('Travelzest' or 'the Company' or "the Group") |
Travelzest plc (AIM: TVZ)
Amended Debt Facility
Travelzest plc announces today that it has reached agreement with its current lending bank Barclays Bank plc ("Barclays") to amend the terms of its existing debt facility (the "Amended Debt Facility" or "AMD").
The Company continues to see strong growth opportunities in the Canadian market which comprises the overwhelming majority of the Company's operations. The Company's UK operations which represent a very small part of the overall group operations continue to experience challenging markets.
Terms of the AMD
The Company has over the last few months been negotiating the terms of the AMD and the Board believes the revised facility will allow it greater flexibility in order to better manage the business.
The Amended Debt Facility is substantially based on the existing debt facility and is revised, inter alia, on the following terms:
·; The repayment date for the existing facility has been extended to 31 October 2013;
·; Pursuant to the AMD, outstanding amounts in respect of the existing £12,500,000 facility will be in Sterling denominated loans with a facility for multi-currency drawdown. Repayments are now scheduled to commence on 31 January 2013; and
·; A new revolving facility has been introduced with a maximum initial draw down of £3,500,000. This is also repayable on 31 October 2013.
As part of these arrangements the Company will be required to pay Barclays an amendment fee of £705,000 which is payable as to £155,000 on the date of the amendment deed and in six equal monthly instalments commencing on 31 January 2013. Under certain circumstances, this fee may be increased to £1.1 million. In addition, to the extent that the Company has drawn down on the new revolving facility and there remains an outstanding balance on 3 January 2012, Barclays will charge a daily monitoring fee of approximately £2,300 per day which would become payable in four equal quarterly instalments commencing on 31 January 2013.
There have been no other material changes to the existing debt facility.
Enquiries:
Travelzest plc Jack Fraser / Mark Molyneux | UK: +44 0800 917 5329 Canada: +1 866 317 3811 |
magdar@travelzestplc.com | |
Merchant Securities Limited (Nominated Adviser and Broker) | +44 020 7628 2200 |
Simon Clements | |
Redleaf Polhill | +44 020 7566 6720 |
Rebecca Sanders-Hewett / Jenny Bahr | travelzest@redleafpolhill.com |
Notes to Editors:
Travelzest plc (LSE:TVZ.L) is a dynamic travel group, with a collection of online travel retailers and specialized tour operators, with operations in over five countries in Europe and North America. Included in the Travelzest family are holiday.co.uk, flight.co.uk, travelzest.com, itravel2000.com, The Cruise Professionals, Best of Morocco, VFB Holidays, Peng Travel, Faraway Holidays, The Malaysia Experience,Tapestry Collection, The Wow House, Captivating Cuba, JMB Travel, and Fair's Fare. Travelzest is traded on London's AIM Exchange under the symbol TVZ.
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