Further loan from Leafrealm Limited

RNS Number : 1812K

Caledonian Trust PLC

06 April 2018

 

Information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

6 April 2018

Caledonian Trust plc

("Caledonian Trust" or the "Company")

Further loan from Leafrealm Limited

On 29 March 2018 the Company announced in its interim results that it was in discussions with Leafrealm Limited ("Leafrealm") in respect of additional loan funding of up to a further £100,000 on the same terms and conditions as previous loan arrangements with Leafrealm. Leafrealm is a company controlled by Douglas Lowe, Caledonian Trust's Chairman, Chief Executive and major shareholder.

The Company announces that on 6 April 2018 Leafrealm entered into an agreement with the Company whereby Leafrealm has agreed to provide an additional loan of £100,000 to the Company (the "Further Leafrealm Loan") on the same terms and conditions as the existing loan facility in place between the parties, details of which were announced on 1 July 2016.

The Further Leafrealm Loan will provide the Company with additional working capital and will provide funding for certain of Caledonian Trust's short-term development activities, pending the sale of two houses in Brunstane which are currently under offer as previously announced by the Company.

The Company has not currently drawn down any amounts under the Further Leafrealm Loan however the likelihood is that the Company will make an initial draw down under the Further Leafrealm Loan by 30 April 2018.

The Further Leafrealm Loan was agreed on the following key terms:

-     The Further Leafrealm Loan carries an annual interest rate of 3% above the base rate of the Bank of Scotland from time to time (currently 0.5%). Interest shall be paid in quarterly instalments.

-     Leafrealm has agreed to waive the margin element of the interest until further notice, resulting in the effective annual interest rate on the Further Leafrealm Loan being the base rate of the Bank of Scotland from time to time. Leafrealm will be entitled to re-instate the margin at any time;

-     The Further Leafrealm Loan will not be convertible into new ordinary shares in the Company;

-     The Further Leafrealm Loan can be repaid by the Company at any time and is repayable on demand by Leafrealm giving 12 months and 1 day's written notice requiring repayment;

-     The Further Leafrealm Loan has no specific loan maturity date; and

-     The Further Leafrealm Loan is unsecured.

The Further Leafrealm Loan is separate to the existing £360,000 loan facility (the "Brunstane Loan Facility"), also from Leafrealm, put in place to provide funding for the construction of two new semi-detached houses at Brunstane Road South, Edinburgh, Scotland, details of which were previously announced on 16 September 2016 and 17 February 2017. As at the date of this announcement, the Brunstane Loan Facility has been fully drawn down.

The aggregate amount that has been advanced by Leafrealm to the Company across various loan arrangements totals £4,290,000 as at the date of this announcement.

Enquiries:                                                                               

Caledonian Trust plc
Douglas Lowe, Chairman and Chief Executive Officer	Tel: [phone]
Mike Baynham, Finance Director	Tel: [phone]
Allenby Capital Limited (Nominated Adviser and Broker)
Nick Athanas Alex Brearley	Tel: [phone]

 

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