Successful Loan Note Restructuring

RNS Number : 2850F

600 Group PLC

15 July 2021

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (as amended), which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018. Upon publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

15 July 2021

The 600 Group PLC

Successful Loan Note Restructuring

The 600 Group PLC (the "Group"), the diversified industrial engineering company (AIM: SIXH), is pleased to announce the successful restructuring of the Company's 2022 8% Loan Notes (the "Loan Notes") and associated warrants to subscribe for new ordinary shares in the Company at a price of 20 pence per new ordinary share (the "Warrants"), pursuant to which the redemption date of the Loan Notes and the expiry date of the Warrants have been extended by 18 months to 14 August 2023 (the "Extension").

The Loan Notes, which were originally issued by the Company in 2015 and had been due for redemption on or by 14 February 2022, remain as issued in all respects save that, following approval by the requisite majority of Loan Notes in issue by way of written resolution, the redemption date of the Loan Notes has been extended to 14 August 2023.

In addition, the life of the Warrants has also been extended to 14 August 2023. All other terms remain unchanged.

Haddeo Partners LLP ("Haddeo"), of which Paul Dupee, the Executive Chairman of 600 Group, is the managing partner, is a holder of 810,000 of the Loan Notes and 5,050,000 Warrants. Haddeo is a 20.0% shareholder of the Company. In addition, Mrs M Carrick, wife of Neil Carrick, the Company's former Group Finance Director and thus a related party, also holds £50,000 of Loan Notes and 250,000 Warrants. With both Haddeo and Mr Carrick deemed related parties of the Company pursuant to the AIM Rules for Companies, their participation in the Extension constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. 

The Independent Directors of the Company being, Stephen Fiamma, Derek Zissman and Stephen Rutherford consider, having consulted with the Company's nominated adviser, that the terms of the Extension are fair and reasonable insofar as the Company's shareholders are concerned.

The extension of the Loan Notes redemption date and the life of the Warrants for these related parties are on the same terms as all other Loan Note and Warrant holders.

Enquiries:

The 600 Group PLC Paul Dupee, Executive Chairman	Tel: [phone]
Instinctif Partners Tim McCall Rosie Driscoll	Tel: [phone]
Cenkos Securities plc (Nominated Adviser and Broker) Ben Jeynes / Max Gould (Corporate Finance) Alex Pollen (Sales)	Tel: [phone]

About The 600 Group PLC

The 600 Group PLC is a distributor, designer and manufacturer of industrial products with three principle areas of activities:

Machine Tools

The business has a strong reputation in the market for metal turning machines. Products range from small conventional machines for education markets, CNC workshop machines and CNC production machines. Selected outsourcing partners support the manufacturing of these machines and they are marketed through the Group's wholly owned international sales organisation and a global distribution network.

Precision Engineered Components

Machine spares are distributed to customers globally to help maintain the installed base of group machines which number in excess of 100,000. Additionally, work holding products are sold via specialist distributors to OEMs, including other machine builders.

Industrial Laser Systems

Industrial laser systems cover laser marking and processing including cutting, drilling, ablation and a host of other niche applications in the marking and micro machining sectors. They require no consumables and can operate on a continuous high speed basis and can be integrated into customers' production lines. The businesses have their own technology and proprietary software. Customer applications are diverse and range from aerospace to medical and pharmaceuticals. The requirement for increased product and component traceability is one of the market drivers.

More information on the Group can be viewed at:  www.600group.com    

 

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