Hornby PLC Extension of Loan Facility
June 21 2024 - 10:00AM
RNS Regulatory News
RNS Number : 4477T
Hornby PLC
21 June 2024
21 June 2024
HORNBY PLC
EXTENSION OF LOAN
FACILITY
Phoenix UK Fund Limited, the
Company's subordinated lender, has agreed an extension to the term
and the amount of its existing secured credit facility (the
"Facility"), providing further support for the Group's stated
turnaround strategy.
The Facility is being extended
from £11.25 million to £12.55 million and the
term extended by 12 months to 31 December 2025. Other than the
extension to the loan term and amount, the terms of the Facility
remain unchanged for £11.25 million of the facility, the agreed
extension to £12.55 million will be at a higher interest rate of
15% on funds drawn.
All advances made under the Facility
become due and payable in December 2025 unless the
facility is extended.
The Company will have the option to
draw down on these funds to capitalise on the positive momentum in
the business and fund the continuing turnaround.
Related Party Transaction
Phoenix Asset Management Partners
Limited ("PAMP") is interested in 121,662,481 ordinary shares
of 1 pence each in the Company, representing 71.63 per
cent. of the issued share capital of Hornby. Given that PAMP
manages Phoenix UK Fund Limited, as a substantial shareholder
in the Company, the extension of the Facility is a related party
transaction pursuant to Rule 13 of the AIM Rules for
Companies.
The Independent Directors consider,
having consulted with Liberum Capital Limited, the Company's
nominated adviser, that the extension to the size and term of the
facility is fair and reasonable insofar as the Company's
shareholders are concerned.
This extension provides the company
with additional headroom to allow the benefits from recent changes
in structure and investments in future growth to flow through. It
also recognises the time required for the impact of current cost
saving and efficiency driving initiatives to take
effect.
Hornby Plc
Olly Raeburn, CEO
Kirstie Gould, CFO
01843 233500
Web: www.hornby.plc.uk
Liberum Capital
Limited (Nominated Advisor & Broker)
Andrew Godber
Edward Thomas
Anake Singh
020 3100 2222
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END
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