Snacktime PLC Banking arrangements and Proposed equity issues (9864M)

TIDMSNAK

RNS Number : 9864M

Snacktime PLC

13 May 2015

SNACKTIME PLC ("SnackTime" or the "Company")

Bank arrangements and new equity subscriptions

Further to its announcement of 1 April 2015, SnackTime announces that The Cooperative Bank ("the Bank") has agreed to a waiver of the breach of the EBITDA/Interest cover covenant and to suspend all covenant testing until 30 September 2015, subject to:-

1. Completion of a GBP100,000 new equity issue by the end of May 2015, the proceeds of which will be used in full to reduce the outstanding balance on the Company's term loan reducing the outstanding amount to GBP1,920,000. It is expected that this issue will be subscribed as to GBP25,000 by members of the Boris Belotserkovsky Concert Party, with the balance from certain Directors and senior management. The price of the subscription will be 10p per share, a premium of 33% on the mid-market price of the Company's ordinary shares on 12 May 2015; and

2. Completion of a further GBP200,000 new equity issue by the end of November 2015, the proceeds of which will again be used to reduce the outstanding balance on the Company's term loan. This further issue is likely to be subscribed in full by members of the Boris Belotserkovsky Concert Party.

The previously scheduled further term loan repayments totalling GBP110,000 will be made as planned by the end of December 2015. Once all three of these events have been completed, the term loan will have been reduced to GBP1,610,000, down from GBP3,394,000 in April 2013.

Alongside the negotiations with the Bank, the Directors are also considering the Company's existing loan notes, including the 2008 Convertible Loan Notes amounting to GBP600,000, due for redemption in December 2015, and a conversion by certain Directors and other noteholders of their holdings of 2013 Convertible Loan Notes amounting to GBP67,500.

Further announcements will be made in due course.

For further information:

 
 SnackTime PLC 
Mark Stone, CEO 
Tim James, CFO    020 8879 8300 
 
 
Westhouse Securities 
 Limited 
Tom Griffiths 
 Richard Johnson       020 7601 6100

This information is provided by RNS

The company news service from the London Stock Exchange

END

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