Related Party Transaction (1268J)

TIDMSYG

RNS Number : 1268J

Speymill PLC

27 June 2011

Speymill plc ("Speymill" or the "Company")

Related Party Transaction

Speymill (AIM: SYG), the multinational property services group, which encompasses real estate investments, investment management services and construction operations, announces that Jim Mellon, a director and substantial shareholder of Speymill, together with Burnbrae Limited (together the "Lenders"), entered into an agreement with the Company to provide a further shareholder loan facility of GBP5 million (the "New Facility"). This New Facility replaces the shareholder loan extended to the Company in June 2010 which was due to expire on 31 July 2011.

The terms of the New Facility are as follows:

Term: Matures on 30 June 2012

Interest rate: 8% per annum which will accrue daily and compounded on the 31 December in each calendar year until the New Facility is converted. Interest is payable in arrears on the date of repayment.

Conversion: The Lenders will have the right, but not the obligation, to convert some or all of the principal and amounts accrued under the New Facility to ordinary share capital subject to regulatory approval. The conversion price will be 6p per share.

Facility Fee: On drawdown of an amount of the New Facility (an "Advance"), an amount of 3% of the amount of the Advance will be added to the Advance and form part of the principal repayable on the date of repayment, subject to a maximum aggregate fee of GBP48,000.

The additional funds will be used to assist the Company with its working capital requirements..

Mr Mellon and Burnbrae Limited, a company which is indirectly wholly owned by the trustee of a settlement under which Mr Mellon has a life interest are considered to be related parties to the Company and, therefore, the New Loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Mr Mellon and Denham Eke, who is also Managing Director of Burnbrae Limited), having consulted with the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

-END-

Contacts:

 
 Speymill plc                            Tel: 01624 640 
  Denham Eke, Chief Executive Officer     860 
 
 Nominated Adviser                       Tel: 020 7131 
  Smith & Williamson Corporate Finance    4000 
  Limited 
  Azhic Basirov 
  Siobhan Sergeant

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCGMGZVFVNGMZZ

Speymill (LSE:SYG)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024