Orchid Developments Group Ltd Amended Credit Facility Secured for Multicomplex (5960N)
October 01 2012 - 6:00AM
UK Regulatory
TIDMOCH
RNS Number : 5960N
Orchid Developments Group Ltd
01 October 2012
01 October 2012
AIM: OCH
Orchid Developments Group Limited
('Orchid' or the 'Group')
Amended Credit Facility Secured for Orchid Multicomplex Varna
(Grand Mall Varna)
Orchid Developments, the Bulgarian focused property developer
and investor, announces that it has entered into an amendment
agreement with the European banking consortium led by OTP and MKB
Group (the "Banks") to amend certain terms of the Company's
existing EUR97.6 million credit facility agreement ("Facility")
related to the Group's multi-use complex in Varna ("Grand Mall
Varna").
Under the term of the amended Facility, the Company has agreed
with the Banks, inter alia, that:
(1) the payment of principal amounts due under the loan
(approximately EUR2.4 million) for the period from July 2012 to
June 2013 shall be suspended unless the Group's cash flow is
sufficient to permit a cash sweep of part or all of the suspended
principal sum due in the period. Non-payment of the loan principal
during this period shall not trigger an event of default under the
Facility;
(2) the suspended principal payment of EUR2.4 million referred
to above shall be repaid by 30 June 2015;
(3) during the suspension period, the Banks shall waive existing
requirements for the Group's debt service coverage ratio ("DSCR")
under the Facility, with the exception that the DSCR shall not fall
under 1; and
(4) certain requirements concerning average rental fee per
square metre and tenancy terms shall be varied to promote greater
occupancy rates and revenue generation.
The amendment will formally completed, subject to the
fulfillment of various registration covenants.
Commenting on the revised Facility, Guy Meyohas, CEO of Orchid
Developments, said:
"The agreement of the revised Facility demonstrates Orchid's
good relationship with the Banks, despite the fact that the Group
continues to operate in a tough market. Orchid is continuing to
market its flagship project, which is evidenced by a gradual
increase in its occupancy and turnover. The new terms agreed with
the Banks will allow the Group to provide further competitive terms
to potential new tenants."
Ends
Contacts:
Orchid Developments
Guy Meyohas +35 92 981 9955
Shore Capital and Corporate Limited
Bidhi Bhoma / Toby Gibbs +44 20 7408 4090
MHP Communications
Reg Hoare / Vicky Watkins +44 20 3128 8100
Notes to Editors:
Orchid Developments Group Ltd (OCH.L), which listed on the AIM
market in July 2005, was established with the aim of generating
value for shareholders by investing in real estate and leisure
business opportunities initially in Bulgaria.
The Group is active in all principal sub-sectors of the
Bulgarian real estate and leisure markets and currently holds three
residential and six commercial property developments in Sofia and
Varna. Its principal investment is the Grand Mall in Varna, a
leading shopping mall in Bulgaria.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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