Issue of Convertible Loan Notes

PCF.L/Index: AIM/Sector: Speciality & other finance

2 November 2012

PRIVATE & COMMERCIAL FINANCE GROUP PLC

RESULTS OF OPEN OFFER, PLACING AND GENERAL MEETING

AGGREGATE FUNDRAISING OF £8,930,000

The Directors of Private & Commercial Finance Group plc (the "Company" or the "Group") are pleased to announce that the Company has raised £5,930,000 (before expenses), and secured a commitment for a further £3,000,000, following the closing of its open offer and placing and that all resolutions presented to today's general meeting were passed.

The open offer closed at 11.00 a.m. on 1 November 2012 when valid applications had been received from qualifying shareholders and qualifying loan note holders under the open offer for 419,554 new convertible loan notes raising gross proceeds of £419,554. The directors are also pleased to announce that pursuant to a placing, the Company has conditionally raised a further £930,000.

The open offer and placing were part of the fundraising, details of which were announced on 16 October 2012 and set out in both the Company's circular and its prospectus dated 16 October 2012. The circular and prospectus are available on the Company's website at www.pcfg.co.uk. The prospectus will also be available at the National Storage Mechanism at http://www.morningstar.co.uk/uk/NSM.

The results of the open offer and placing mean that the Company has raised £5,930,000 (before expenses) through the issue of convertible loan notes as follows:

·; £850,467 to Bermuda Commercial Bank Ltd ("BCB") by way of a direct subscription

·; £419,554 to certain qualifying shareholders and qualifying loan note holders pursuant to the open offer

·; £3,729,979 to BCB pursuant to its agreement with the Company to underwrite the open offer

·; £930,000 through a placing to certain institutional and other investors procured by Westhouse Securities Limited

and secured a commitment, at the option of the Company, for the issue of a further £3,000,000 of convertible loan notes to BCB.

Scott Maybury, Chief Executive of PCFG, commented:

"This is a very positive development for the Group and positions us to take advantage of future opportunities in our sector. It affirms BCB's and its parent's, Bermuda National Limited, support for our business and confidence in our plans. This, together with the committed headroom we now have on our debt facilities, means the Group can embark on the growth strategy and initiatives outlined in our most recent Annual Report, including the recent appointment of Simon Wilkes as Sales and Marketing Director.

"There are significant benefits to the transaction, including the commitment of all revolving debt facilities for more than three years and the provision of a facility to repay the existing loan notes which mature in September 2013. It also strengthens the balance sheet making the Group more attractive to new funders. This provides the confidence and platform to grow the portfolio and improve the Group's return on assets towards our target of 2%."

Following the passing of the resolutions at today's general meeting, the Company has issued £5,930,000 of convertible loan notes (the "Initial Issue"). The remaining £3,000,000 of convertible loan notes are expected to be issued before 16 October 2013 being 12 months from the publication of the Company's prospectus and circular.

Applications have been made to the UK Listing Authority for the convertible loan notes to be issued pursuant to the Initial Issue to be admitted to the standard listing segment of the Official List and to the London Stock Exchange for such convertible loan notes to be admitted to trading on its Main Market ("First Admission"). It is expected that First Admission will occur, and that dealings in the convertible loan notes issued pursuant to the Initial Issue will commence, at 8.00 a.m. on 5 November 2012. The TIDM symbol of the convertible loan notes on the London Stock Exchange will be PCFC.

The Company's ordinary shares will continue to trade on AIM with the TIDM symbol PCF. 

**ENDS**

Enquiries:

Notes to Editors:

Private & Commercial Finance Group plc ("PCFG") is an AIM-quoted finance house. 

PCFG has two main operating divisions: Consumer Finance - which provides a range of specially tailored finance products for consumers and Business Finance - which finances vehicles, plant and equipment for SMEs. The Group has a highly efficient and scalable business model, utilising its specially developed internet-based proposal system to service national networks of brokers and suppliers. This allows it to handle a large volume of proposals extremely quickly with proportionately low costs.