Repayment of debt facility and issue of equity

RNS Number : 6427A

Globalworth Real Estate Inv Ltd

08 June 2016

 

Globalworth Real Estate Investments Limited

Update on repayment of existing Euro 100 million debt facility and issue of equity

Guernsey, 8 June 2016:  Globalworth Real Estate Investments Ltd. (AIM: GWI) ("Globalworth" or the "Company"), the real estate investment company targeting opportunities in Romania, announced on 31 May 2016 that it had signed a three year €180 million fully subscribed bond transaction, part of the proceeds of which would go towards repaying the €100 million corporate level facility (the "Existing Facility") granted by an affiliate of York Capital Management Global Advisors, LLC, through York Global Finance Offshore BDH (Luxembourg) S.à r.l. ("York") and by funds managed and/or advised by Oak Hill Advisors (Europe), L.P. and/or its affiliates ("Oak Hill").

The Company is pleased to announce that it has entered into an agreement with York and Oak Hill pursuant to which (subject to the satisfaction of certain conditions precedent, including in relation to the bond transaction) York has agreed that  €6 million of the aggregate amount payable by the Company to York, in respect of certain amounts payable by the Company under the Existing Facility, will convert into an entitlement to receive 1 million shares in the Company ("Shares") at a conversion price of €6.00 per Share.

The price of €6.00 per Share is the same as the placing price at the last fundraising by the Company in September 2015, and equates to a premium of 18 per cent. to the closing middle-market price on 8 June 2016.

It is expected that the Existing Facility will be repaid, and that the Shares will be issued, shortly.   

For further information visit www.globalworth.com  or contact: 

Panmure Gordon (Nominated Adviser and Joint Broker)                   Tel: [phone]

Andrew Potts

Cantor Fitzgerald Europe (Joint Broker)                                                      Tel: [phone]

Rick Thompson

David Foreman

Milbourne (Public Relations)                                                                           Tel: [phone]

Tim Draper

About Globalworth:

Globalworth Real Estate Investments Limited is a real estate investment company founded by real estate investor and developer Ioannis Papalekas currently focused on taking advantage of investment opportunities in Romania.  The Company's shares were admitted to trading on AIM in July 2013.

The Romanian market offers an attractive real estate investment proposition in the medium-to-long term. Globalworth believes that global investor capital flows will gradually move from markets considered as "safe havens" to more peripheral markets such as Romania in search of higher yielding investments. As a result, Romania should, in due course, become a more attractive destination for a wide investor audience. Globalworth anticipates holding an early mover advantage in and benefitting from this gradual shift in investor sentiment.

 

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