Real Good Food PLC Overdraft Facility (1722O)
August 16 2017 - 6:21AM
UK Regulatory
TIDMRGD
RNS Number : 1722O
Real Good Food PLC
16 August 2017
For release: 16(th) August 2017
Real Good Food plc
(the "Company" or "Real Good Food")
Overdraft Facility
The Company announces that the Board has agreed a
'cash-collaterised' overdraft facility with Lloyds Bank. The recent
re-forecast exercise, announced on 1(st) August, identified a
short-term working capital requirement as the Company proceeds with
its major investment programmes at Renshaw and Haydens during the
autumn stock build. In addition, Downing LLP ("Downing") has
notified the Company that it has elected, at this time, not to
subscribe for the second tranche of the loan notes of GBP1.5m,
which it had an option to subscribe for, pursuant to its original
investment announced on 29 June 2017.
Sales within the Cake Decoration Division continue to show
strong year on year growth and the need to fund an autumn stock
build for a strongly seasonal business is part of the Company's
normal trading pattern. Accordingly, Lloyds Bank has agreed to
provide the Company with an overdraft facility of up to GBP2.0m
with two major shareholders (Napier Brown Holdings and Omnicane
Limited) each putting GBP1.0m into an account, as security (the
"Shareholder Loans").
The Shareholder Loans have an interest rate of 6.5% per annum,
which shall accrue daily and compound annually and shall be paid on
the date on which the Shareholder Loan is repaid or due to be
repaid. The Shareholders Loans are secured against the Company's
assets, subject to an inter-creditor agreement between each of
Downing, Lloyds Bank plc, Lloyds Bank Commercial Finance Limited,
Napier Brown Holdings Limited and Omnicane Limited. The Shareholder
Loans are repayable on the first anniversary of the Shareholder
Loan agreements, or on the provision of 6 months written notice by
the lenders. The Company can elect to repay the Shareholder Loans
early, at its own discretion, subject to written notice.
The Board considered other options that could be provided by
other debt providers, however it concluded that these could take a
number of weeks to arrange and that the Lloyds offer of a
cash-collaterised overdraft facility backed by the Shareholder
Loans was the most appropriate option available to meet the
Company's short term requirements at this time.
Christopher Thomas, Judith Mackenzie and Hugh Cawley, the
Independent Directors of the Company, having consulted with the
Company's Nominated Adviser, finnCap Ltd, consider the terms of the
Shareholder Loans to be fair and reasonable insofar as the
Company's shareholders are concerned.
-Ends-
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
ENQUIRIES:
Real Good Food plc
Chris Thomas, Executive Tel: 020 3857 3900
Director
Andrew Brown, Marketing
Director
finnCap Ltd (Nomad and
Broker)
Matt Goode Tel: 020 7220 0500
Carl Holmes
Daniel Stewart and Company
Plc (Joint Broker)
David Lawman Tel: 020 7776 6550
Belvedere Communications
(PR)
John West Tel: 020 3567 0510
Kim van Beeck
This information is provided by RNS
The company news service from the London Stock Exchange
END
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