Reconstruction Capital II Ltd Convertible Loan Update and Bridge Loan Extension (6251L)
July 07 2014 - 7:30AM
UK Regulatory
TIDMRC2
RNS Number : 6251L
Reconstruction Capital II Ltd
07 July 2014
7 July 2014
Reconstruction Capital II Limited
("RC2" or the "Company")
Convertible Loan Update and Bridge Loan Extension
RC2 today announces that the terms of the proposed EUR9.0
million secured convertible loan (the "Convertible") are currently
being finalised and, whilst subject to change, the Board currently
expects the Convertible to have a three year term from the date of
issue and a coupon rate of 10% simple interest per annum, with the
right to convert into approximately 40% of the enlarged share
capital of RC2. The issuance of the Convertible has however taken
longer than anticipated and as a consequence, the four month
EUR6.75 million bridge loan (the "Loan") from Ion Florescu (the
"Lender"), which was announced on 1 April 2014, has been extended
for a period of up to three months and will now mature on 31
October 2014. Whilst the Board considered it prudent to arrange
this extension, the Loan can always be repaid early without any
penalty and the rest of the terms of the Loan remain the same.
The Lender is a Director of the Company. The extension of the
Loan therefore constitutes a Related Party transaction under AIM
Rule 13. The Directors of RC2 (other than Ion Florescu) consider,
after consultation with the Company's Nominated Adviser, that the
terms of the Loan are fair and reasonable in so far as its
shareholders are concerned.
The issuance of the Convertible will be subject to shareholder
approval. The Company will make a further announcement regarding
the issuance of the Convertible as soon as practicable.
For further information, please contact:
Reconstruction Capital II Limited
Ion Florescu
Tel: +44 (0) 207 244 0088/ +40 21 3167680
Howard Golden
Tel: 0035 67 9612020
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett / David Hignell
Tel: +44 (0) 20 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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