Refinancing and Directorate Change
October 13 2009 - 2:00AM
UK Regulatory
TIDMMRX
RNS Number : 6536A
Metalrax Group PLC
13 October 2009
13 October 2009
Metalrax Group PLC ("Metalrax" or the "Company")
Refinancing and Directorate Change
Metalrax is pleased to announce the completion of the refinancing of its bank
borrowings. Under the terms of this refinancing, Metalrax has agreed facilities
of up to GBP23.7m with HSBC Bank Plc and The Royal Bank of Scotland Plc. These
new facilities will expire in three years' time.
This refinancing package comprises the following:
* GBP11.9m committed loan secured against Metalrax properties;
* GBP10.8m facility provided by means of invoice discounting and an overdraft; and
* GBP1m of sterling corporate facilities.
As part of this refinancing Metalrax has granted an equity warrant instrument to
be issued in favour of HSBC Bank Plc and The Royal Bank of Scotland Plc for, in
aggregate, 4.99% of the issued share capital at the time of exercise, with an
exercise price of 5 pence per share.
In securing these banking facilities, the Board believes that it has obtained
the necessary funding to enable the Group to continue as a going concern. The
banking deal removes the risk of a material uncertainty as reported in the
recent Interim announcement on 29 September 2009.
As a condition to Metalrax Group Pension Trustees Limited supporting the
refinancing, Metalrax has provided security in its favour as trustee of the
Metalrax Group Plc Pension and Life Assurance Plan.
John Crabtree, Chairman of Metalrax, commented:
"The completion of the refinancing puts Metalrax on a strong footing for the
future. This year's trading has been difficult, reflecting the general economic
climate. However we have made good progress in our strategy to refocus the
Company and now, with the support of our banks, we can continue the turnaround."
Following the successful completion of the refinancing, Metalrax also announces
that Michael Stock, Group Finance Director and Company Secretary, will be
leaving the Company on 31 October 2009 as part of the restructuring of central
overheads. Michael will not be replaced and his responsibilities will be assumed
by Group Financial Controller, Nick Longley ACA, and Director of Finance -
Operations, Ian Flavell FCMA.
Andrew Richardson, Chief Executive Officer of Metalrax, said:
"Michael has successfully led the completion of this major refinancing, the
restructuring of the Group's financial processes as well as building a capable
finance team. I would like to thank him for his excellent contribution and wish
him all the best for the future".
For further information:
+------------------------------------+-----------------------------------+
| Metalrax Group PLC | |
+------------------------------------+-----------------------------------+
| Andrew Richardson, Chief Executive | 0121 433 8961 |
+------------------------------------+-----------------------------------+
| | |
+------------------------------------+-----------------------------------+
| Arden Partners | |
+------------------------------------+-----------------------------------+
| Steve Douglas | 0121 423 8900 |
+------------------------------------+-----------------------------------+
| | |
+------------------------------------+-----------------------------------+
| Hogarth Partnership | |
+------------------------------------+-----------------------------------+
| Andrew Jaques | 020 7357 9477 |
+------------------------------------+-----------------------------------+
| Rachel Hirst | |
+------------------------------------+-----------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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