Turbo Power Systems Inc Amended Loan Agreement (3577O)

TIDMTPS

RNS Number : 3577O

Turbo Power Systems Inc

10 October 2012

Turbo Power Systems Inc.

("TPS" or the "Company")

Amended Loan Agreement

TPS, the innovative electrical machines and electronic systems provider, announces that its wholly owned UK subsidiary, Turbo Power Systems Limited, has today entered into an agreement to amend its existing loan agreement with TAO Sustainable Power Solutions (UK) Limited ("Tao") (the "Existing Debt") so as to extend the existing finance facility provided by Tao to TPS by a total of GBP1.50m (the "Extension Loan") to a total of GBP4.32m.

The Extension Loan, which provides working capital in support of the Company's trading in continuing challenging markets and whilst certain new contracts remain under negotiation, represents an amendment to the agreement in respect of the Existing Debt (as previously notified and amounting to GBP2.82 million). Accordingly, the terms of the Extension Loan mirror those of the Existing Debt, notably that:

   --           Term: the Extension Loan will be repayable on 1 April 2014; and 
   --           Annual interest rate: 6.0%, payable quarterly in arrears.

It is intended that the Extension Loan is to run for its full term. The directors of the Company continue to consider a range of further options to address the Company's financing requirements.

Related Party Transaction

Tao, which holds 89.4% of the issued share capital of the Company, is a related party for the purposes of the AIM Rules for Companies ("AIM Rules") and the entry into the agreement as set out above with Tao therefore constitutes a related party transaction for the purpose of the AIM Rules.

The Company's independent directors consider, having consulted with finnCap Ltd, the Company's nominated adviser, that the terms of the transaction being entered are fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact:

 
 Turbo Power Systems Inc.                 Tel: +44 (0)20 8564 4460 
 Carlos Neves, Chief Executive Officer 
 
 Kreab Gavin Anderson (financial public   Tel: +44 (0)20 7074 1800 
  relations) 
 Robert Speed / Georgia Lewis 
 
 finnCap (NOMAD, broker and financial     Tel: +44 (0)20 7220 0500 
  advisor) 
 Marc Young / Henrik Persson

This information is provided by RNS

The company news service from the London Stock Exchange

END

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