K&C REIT PLC Issue of Loan Notes (5199K)
July 10 2017 - 2:00AM
UK Regulatory
TIDMKCR
RNS Number : 5199K
K&C REIT PLC
10 July 2017
10 July 2017
K&C REIT plc
("K&C" or the "Company")
Issue of Loan Notes
K&C REIT plc is pleased to announce that it has issued
GBP1.35 million nominal value loan notes ("Loan Notes"). The Loan
Notes attract interest at a rate of 6 per cent per annum, payable
quarterly, and will be redeemed on 30 June 2020 ("Redemption
Date").
GBP700,000 nominal value of the Loan Notes may be converted into
new ordinary shares of 1p each in the Company ("Ordinary Shares")
at any time prior to the Redemption Date at the sole discretion of
the holders. Any conversion will be at either 12 pence per share
or, in certain circumstances, the price at which the Company places
further new Ordinary Shares with investors prior to the Redemption
Date.
The majority of the proceeds of the Loan Note issue will be used
to acquire three leases over apartments within one of the group's
freehold properties. These apartments will be added to K&C's
pool of rental property. The balance of the proceeds will be used
for general working capital purposes.
Venaglass Limited, which currently holds 19.0 per cent. of the
issued share capital of the Company, is subscribing for GBP400,000
Loan Notes. Tim James, Property Director, is subscribing for, in
aggregate, GBP100,000 Loan Notes and Kimono Investment Holdings
Limited, a trust established for the benefit of the adult children
of Oliver Vaughan, a non-executive director of the Company, is
subscribing for GBP100,000 Loan Notes. These subscriptions are
classified as related-party transactions under the AIM Rules for
Companies.
The directors of K&C, other than Tim James and Oliver
Vaughan, consider, having consulted with the Company's nominated
adviser Arden Partners, that the terms of the Loan Note issue are
fair and reasonable insofar as shareholders are concerned.
Contacts:
K&C REIT plc info@kandc-reit.co.uk
Dominic White, Chief executive +44 20 3793
Tim James, Property director 5236
+44 7768 833
Arden Partners plc 029
William Vandyk
Steve Douglas
+44 20 7614 5917
Yellow Jersey PR +44 7747 788
Charles Goodwin 221
Notes to Editors:
K&C's objective is to build a substantial residential
property portfolio that generates secure income flow for
shareholders through the acquisition of SPVs (Special Purpose
Vehicles) with inherent historical capital gains. The Directors
intend that the group will acquire, develop and manage residential
property assets primarily within the M25 as well as in other key
residential areas in the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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