IDE Group Holdings PLC Issue of Loan Notes and Contract Wins (1831Y)
30 Diciembre 2019 - 1:00AM
UK Regulatory
TIDMIDE
RNS Number : 1831Y
IDE Group Holdings PLC
30 December 2019
IDE Group Holdings Plc
("IDE", the "Group" or the "Company")
Loan Note Issue and Contract Wins
IDE, the mid-market network, cloud and IT Managed Services
provider, announces that it has raised GBP1.5 million through the
issue of secured loan notes ("LNs") to the three largest
shareholders of the Company; MXC Capital Limited ("MXC") (GBP1.23
million), Blake Holdings Limited (GBP0.15 million) and funds
managed by Kestrel Partners LLP ("Kestrel") (GBP0.12 million). The
proceeds of the issue of the loan notes will be used to fully repay
all outstanding finance leases to which the Group is party and to
provide additional working capital for the Company.
IDE is also pleased to announce that the success it reported at
the time of the interim results in September in renewing
significant customer contracts and in progressing new relationships
has continued. Several additional multi-year customer contract
renewals, including one two-year deal worth over GBP1 million per
annum and a further two two-year minimum deals worth at least GBP1
million in total have been secured. The Company has also started
working on a tech bar project (on-site technical support) which is
worth over GBP1 million per annum and recently added a new name
customer with whom it has a good pipeline of new business.
Further re the LNs
The LNs have the same terms as those loan notes issued in
January and March this year, being a term of six years (the "Term")
and an annual coupon of 12%, which is rolled up, compounded
annually and payable at the end of the Term. The LNs carry an
arrangement fee of 2.5 per cent., payable at the end of Term, and
an exit fee of 2.5 per cent., also payable at the end of the Term.
The LNs are secured on the Company's assets and can be redeemed at
any time at the Company's option, however, should the Company opt
to redeem the LNs prior to the end of the Term, all interest due
until the end of the Term will become payable, together with the
arrangement and exit fees, upon such early redemption. IDE now has
GBP11.5 million of LNs in issue in addition to GBP2.55 million of
unsecured, zero coupon loan notes.
Both MXC and Kestrel and deemed to be related parties of the
Company pursuant to the AIM Rules for Companies (the "AIM Rules");
MXC by virtue of being a substantial shareholder and because Ian
Smith, CEO of MXC is Executive Director of IDE, and Kestrel because
Seb White is Non-Executive Director of IDE and a representative of
Kestrel. The issue of the loan notes to MXC and funds managed by
Kestrel is therefore considered to be a related party transaction.
Andy Parker, being the sole independent director for these purposes
considers, having consulted with the Company's nominated adviser,
finnCap, that the terms of the related party transaction are fair
and reasonable insofar as the shareholders of the Company are
concerned.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
IDE Group Holdings Plc Tel: +44 (0)344
Andy Parker, Executive Chairman 874 1000
finnCap Limited Tel: +44 (0)20 7220
Nominated Adviser and Broker 0500
Corporate finance: Jonny Franklin-Adams/
Hannah Boros
ECM: Tim Redfern/ Richard Chambers
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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