Brady plc New £5.0 million Loan Agreement (2615U)

TIDMBRY

RNS Number : 2615U

Brady plc

21 November 2019

Brady PLC

("Brady", the "Company" or the "Group")

New GBP5.0 million Loan Agreement

Brady plc, the leading global provider of trading, risk management and settlement solutions to the energy and commodities sectors, announces that it has (through its subsidiary, Brady Trading Limited ("Brady Trading")) entered into an uncommitted secured loan agreement for a total facility amount of GBP5.0 million (the "Facility") with Hanover Acquisition Limited ("Hanover"). Brady Trading intends to immediately draw down GBP3.0 million under the Facility and to apply the proceeds of this initial draw down towards the refinancing the existing Brady Trading and Brady Credit Trading Limited GBP3.0 million facility announced on 13 November 2019.

The full proceeds of the Facility, if available to the Company, would meet the Group's current funding requirements to January 2020 and would additionally provide funding to support to the Group through the anticipated low point of its Q1 2020 working capital cycle in February 2020.

As security for the Facility, the Company, Brady Trading and Brady Credit Trading Limited will grant first ranking security over all of their assets (including, and not limited to, all shares held by it in any member of the group from time to time). Interest will be charged on the drawn amount under the Facility at a floating annual rate of 2.5 per cent over the prevailing Bank of England base rate.

The Facility is repayable immediately on demand by Hanover (the "Repayment Date") and is otherwise capable of repayment by Brady Trading in full without penalty on three business days' notice at any time. The Facility will cease to be available if repayment and/or cancellation is demanded by Hanover or made by the Company (the "Termination Date").

The Facility is also repayable in the event of a change of control or the sale of all or substantially all of the assets of the Group or an illegality event.

Under the Facility, Brady Trading has agreed to meet the costs and expenses (including legal fees) reasonably incurred by Hanover in connection with entry of the Facility not exceeding GBP25,000 (excluding VAT and documented disbursements), such expenses to be paid by Brady Trading within 30 days of the date of the Facility.

Hanover is interested in 56.2% of the Company's issued share capital and, under the AIM Rules for Companies ("AIM Rules"), Hanover is therefore deemed to be a related party of the Company. As a result, entry of the Facility by the Company is a related party transaction pursuant to Rule 13 of the AIM Rules. The directors of the Company consider, having consulted with Cenkos Securities plc in its capacity as the Company's nominated adviser, that the terms of the Facility are fair and reasonable insofar as the shareholders of the Company are concerned.

The information contained within this announcement was deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 prior to release of this announcement. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

In accordance with Rule 26.3 of the Code, a copy of the Facility will be available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, for inspection on Brady's website at https://www.bradyplc.com/recommended-cash-offer/ promptly and in any event by no later than 12 noon (London time) on the Business Day following the date of this announcement. For the avoidance of doubt the contents of that website is not incorporated into, and does not form part of this announcement.

For further information please contact:

 
 
    Brady plc                                 Telephone: +44 (0)20 
    Carmen Carey, Chief Executive             3301 1200 
    Martin Thorneycroft, Chief Financial 
    Officer 
  Cenkos Securities                         Telephone: +44 (0)20 
   Ben Jeynes / Cameron MacRitchie           7397 8900 
  Newgate Communications                    Telephone: +44 (0)20 
   Bob Huxford / Ian Silvera /               7382 4730 
   Megan Kovach

About Brady

Brady plc (BRY.L) is the largest European-headquartered provider of trading and risk management software to the global commodity and energy markets. Brady combines fully integrated and complete solutions supporting the entire commodity trading operation, from capture of financial and physical trading, through risk management, handling of physical operations, back office financials and treasury settlement, for energy, refined and unrefined metals, soft commodities and agriculturals.

Brady has 30 years' expertise in the commodity markets and its clients include many of the world's largest financial institutions, trading companies, miners, refiners and producers, tier one banks and a large number of London Metal Exchange (LME) Category 1 and 2 clearing members and many leading European energy generators, traders and consumers.

For further information visit: www.bradyplc.com

Brady plc: Twitter/Facebook/LinkedIn

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END

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November 21, 2019 09:35 ET (14:35 GMT)

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