TIDMAHCG
RNS Number : 1293K
Action Hotels PLC
05 July 2017
This announcement contains inside information
Action Hotels plc
("Action Hotels" or the "Company")
Related Party Loan Arrangements
Existing Loans
Action Hotels, the leading owner, developer and asset manager of
branded three and four-star hotels in the Middle East and Australia
reports that during the period from 22 November 2016 to 30 June
2017, the Company entered into a number of loan agreements (the
"Existing Loans") all of which are detailed in the table below.
All of the lending parties (the "Existing Lenders") are
ultimately controlled by Sheikh Mubarak A. M. Al Sabah ("Sheikh
Mubarak"), the Chairman of, and a major shareholder in, Action
Hotels. The Existing Loans that have already been entered into are
drawn down in the aggregate amount of approximately US$15.6m, all
of which has been invested into the development of Action Hotels'
current hotel portfolio.
Lending party Jurisdiction Date Amount Current Aggregate
of agreement of loan amount amount
(US$) outstanding (US$)
(US$)
-------------------- -------------- --------------- ---------- ------------- -----------
Action Group
Australia 22 Nov
Pty Ltd Australia 2016 422,183 249,472 249,472
-------------------- -------------- --------------- ---------- ------------- -----------
Water Front
Place Development 22 Nov
Trust Australia 2016 2,533,096 2,295,139 2,544,611
-------------------- -------------- --------------- ---------- ------------- -----------
Action Real
Estate Company 15 Dec
K.S.C.C Kuwait 2016 2,007,440 2,007,440 4,552,051
-------------------- -------------- --------------- ---------- ------------- -----------
Action Real
Estate Company 9 Feb
K.S.C.C Kuwait 2017 591,056 591,056 5,143,107
-------------------- -------------- --------------- ---------- ------------- -----------
Action Real
Estate Company 7 Mar
K.S.C.C Kuwait 2017 4,736,122 4,275,559 9,418,666
-------------------- -------------- --------------- ---------- ------------- -----------
Action Group
Holding Company 2 May
K.S.C.C Kuwait 2017 266,667 266,667 9,685,333
-------------------- -------------- --------------- ---------- ------------- -----------
Action Group
Holding Company 2 May
K.S.C.C Kuwait 2017 67,000 67,000 9,752,333
-------------------- -------------- --------------- ---------- ------------- -----------
Action Real
Estate Company 6 Jun
K.S.C.C Kuwait 2017 4,000,000 4,000,000 13,752,333
-------------------- -------------- --------------- ---------- ------------- -----------
Action Group
Holding Company 21 Jun
K.S.C.C Kuwait 2017 103,957 103,957 13,856,290
-------------------- -------------- --------------- ---------- ------------- -----------
Action Group
Holding Company 22 Jun
K.S.C.C Kuwait 2017 1,754,268 1,754,268 15,610,558
-------------------- -------------- --------------- ---------- ------------- -----------
The Existing Loans are all unsecured, and bear interest at a
rate of 9.9% per annum, which the board considers to be competitive
compared to alternative offers received. When they were entered
into, the Existing Loans were all repayable after 6 months (and
those that have expired have been extended by mutual
agreement).
Master Loan Facility
Action Hotels is pleased to announce that on 4 July 2017, it
entered into a master loan facility agreement (the "Facility") with
Action Group Holding Company K.S.C.C (the "Main Lender") under
which Action Hotels can draw down up to US$25m for investment in
its hotel development pipeline and for general working capital
purposes. The Main Lender is controlled by Sheikh Mubarak, and all
of the Existing Lenders are subsidiaries or affiliated companies to
the Main Lender.
The Facility includes all amounts drawn down under the Existing
Loans, meaning that there is currently approximately US$9.4m of
further funds available to Action Hotels under the Facility.
All amounts drawn down under the Facility, which is unsecured,
are on similar terms to the Existing Loans and will attract
interest at a rate of 9.9% per annum, and are repayable within 6
months of drawdown date (the "Repayment Date"). The Repayment Date
can be extended by mutual consent of the parties and Action Hotels
is entitled to repay all amounts borrowed under the Facility at any
time without penalty. Going forward the Existing Loans will be
governed by the Facility and drawdown dates are to be mutually
agreed by both parties.
The Existing Loans and the Facility constitute related party
transactions under AIM Rule 13 of the AIM Rules for Companies as
Sheikh Mubarak is both a controller of each of the Main Lender and
the Associated Lenders, and a major shareholder and non-executive
chairman of Action Hotels. The independent directors of the
Company, having consulted with the Company's nominated adviser,
Zeus Capital Limited, consider that the terms of the Existing Loans
and of the Facility are fair and reasonable insofar as its
shareholders are concerned.
Alain Debare, Chief Executive Officer, Action Hotels
commented:
"We remain grateful for the continued support of our main
shareholder and are delighted to have secured a flexible facility
for the Company at competitive rates, which enables us to continue
the development of our hotel pipeline in line with our
strategy."
For more information contact:
Action Hotels PLC Tel: +44 (0) 20 7907 9663
Alain Debare, Chief Executive Officer
Katie Shelton, Director of Corporate Affairs
Zeus Capital Limited (Nomad and Broker)
Dan Bate / Andrew Jones Tel: +44 (0) 161 831 1512
Victoria Ayton Tel: +44 (0) 20 3829 5000
Camarco (Press enquiries) Tel: +44 (0) 20 3757 4994
Jennifer Renwick / Tom Huddart
Notes to Editors
Action Hotels PLC
Action Hotels PLC is a leading owner, developer and asset
manager of branded three and four star hotels in the Middle East
and Australia. Established in 2005, Action Hotels currently has 12
completed hotels with 2,181 rooms in aggregate across the Middle
East and Australia, with further properties in development in both
regions.
More information is available at
http://www.actionhotels.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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