Peel Hotels Plc
Creation of £1,000,000 7% Unsecured Loan Notes 2013
Peel Hotels Plc (the "Company") announces that the Board of Directors of the Company has resolve to create up to £1,000,000 of Loan Notes (the "Loan Notes"), of which £850,000 is now being issued by way of a subscription for £350,000 of Loan Notes by Robert Peel (a Director and substantial Shareholder of the Company, owning 5,496,900 shares - representing 39.2% of the Company) and by way of subscription for £500,000 of Loan Notes by Charles Peel (also a substantial Shareholder, owning 2,608,748 shares - representing 20.3% of the Company).
The funds will be used to meet short-term forecast peak borrowing requirements beyond the Company's agreed Bank overdraft facility.
The Loan Notes, which are unsecured, carry a 7% per annum coupon (payable quarterly) and are repayable as to 50% on 30 June 2013 and as to the balance on 31 December 2013, or earlier in other limited circumstances including certain events of default. The Loan Notes may also be repaid at any time at the discretion of the Company.
Robert Peel and Charles Peel, who subscribes to Loan Notes of £850,000, constitutes a related party transaction under the AIM Rules.
Peel Hunt LLP consider the subscription by Robert and Charles Peel for an aggregate £850,000 of the Loan Notes to be fair and reasonable as far as Shareholders are concerned.
Not sure what is going on here but I can't see anything - is that meant to have happened?
ReplyDeleteTHe regularity of updates would be even better if there was some detail to go alongside them.
Best wishes
Clare