Uvenco UK plc Debt restructuring (1246H)
August 15 2016 - 2:00AM
UK Regulatory
TIDMUVEN
RNS Number : 1246H
Uvenco UK plc
15 August 2016
15 August 2016
Uvenco UK plc
Debt restructuring
Uvenco UK plc ("Uvenco", the "Company" or the "Group") announces
that it has today entered into an agreement to settle the Group's
GBP2.4 million outstanding bank facility for GBP1.0 milion, payable
in cash.
On the same date the Company, through its subsidiaries Uvenco
Limited, Simply Drinks Limited and Drinkmaster Limited, has entered
into a GBP1.3 million debt facility agreement ("Reward Agreement")
with Reward Invoice Finance Limited, part of the Reward Finance
Group ("Reward"), a Manchester and Leeds based alternative lender,
in order to provide the funds to satisfy the bank facility
settlement, as well as additional working capital. The terms of the
Reward Agreement reflect the expected short-term nature of the debt
and are structured around a confidential invoice discounting
facility, together with a charge on other balance sheet assets
including property and vending machines. Cash interest of 1.75% per
month will be payable monthly in arrears on the principal
outstanding. The loan has a minimum term of 2 months after which
the Group can terminate, whilst Reward cannot terminate before
August 2017, in each case on one month's notice. Reward have also
been granted a personal guarantee by Boris Belotserkovsky in
relation to this facility. Initially the Group will be borrowing
GBP1.2 million, with a further GBP0.1 million available conditional
upon the Company arranging a new equity investment of GBP0.1
million. The Group intends to take this up in due course.
Sergei Kornienko Chief Executive of the Company, commented:
"This one off opportunity provided us with a significant further
step towards the reshaping of our Balance Sheet. We are indebted to
Reward for how quickly they have enabled us to maximise the
opportunity, however the ultimate success of the transaction will
depend upon the speed with which we replace the Reward lending with
more conventional debt."
Enquiries
Uvenco UK plc Tel No. 020 8879 8300
Sergei Kornienko
Peter Goodman
Stockdale Securities Tel No. 020 7601 6100
Tom Griffiths
Richard Johnson
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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