CLS Holdings PLC Early redemption of outstanding amortising bonds (6101U)
October 25 2017 - 8:43AM
UK Regulatory
TIDMCLI
RNS Number : 6101U
CLS Holdings PLC
25 October 2017
CLS Holdings plc
("CLS", the "Company", the "Group")
Early redemption of outstanding
10.765% Amortising Bonds due 2025
CLS Holdings plc announces that its subsidiary company has today
given formal notice to redeem early its outstanding GBP23.5 million
10.765% Amortising Bonds due 2025 (the "Amortising Bonds"). The
Amortising Bonds will be redeemed in full on 4 December 2017 at a
redemption price of GBP141.112 per GBP100 principal amount of bonds
outstanding on the date of redemption, together with accrued
interest, equating to a total payment of GBP33.1 million plus
accrued interest. The payment will be financed from existing cash
resources of the Group, and will reduce the Group's tax payable in
2017 by GBP1.8 million.
The Amortising Bonds comprise the only remaining debt secured
against New Printing House Square, 214/236, Gray's Inn Road, WC1,
representing a loan to value of less than 20%; this property is
expected to be refinanced in 2018.
On redemption of the Amortising Bonds, the Group's pro forma
weighted average cost of debt will fall to 2.70% (30 June 2017:
2.94%) and annual cash flow from operating activities will increase
by GBP2.0 million.
The effect of redeeming the Amortising Bonds will be accretive
to EPRA earnings initially by 0.5 pence per share and EPRA net
asset value will fall by 0.7%, or 1.9 pence per share.
Fredrik Widlund, Chief Executive Officer of CLS, said:
"The Amortising Bonds comprise the last remaining expensive
legacy debt of the Group. By redeeming the Bonds the weighted
average cost of debt becomes the lowest in the Group's history.
Further, we will be in a position to refinance New Printing House
Square, adding around GBP50 million net to liquid resources whilst
still reducing the overall annual interest payable of the Group
and, in enhancing earnings per share, underpinning the
dividend."
For further information, please contact:
CLS Holdings plc
www.clsholdings.com
+44 (0)20 7582 7766
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
Liberum Capital Limited
+44 (0)20 3100 2222
Richard Crawley
Jamie Richards
Panmure Gordon (UK) Limited
+44 (0)20 7886 2500
Dominic Morley
Andrew Potts
Elm Square Advisers Limited
+44 (0)20 7823 3695
Jonathan Gray
Smithfield Consultants (Financial PR)
+44 (0)20 3047 2476
Alex Simmons
This information is provided by RNS
The company news service from the London Stock Exchange
END
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