Order Win & Facility Agreemen

RNS Number : 1239B

Optare PLC

11 February 2011

 



Optare plc

("Optare" or the "Company")

Facility Agreement

Optare is pleased to announce it has secured a contract to supply 68 single and double deck buses to a major operator in the UK for fleet replacement in 2011. This £7.6 million contract takes Optare's current order book to over £43 million.

Further to the announcement made on 16 December 2010, the Company announces that it has entered into a second loan facility agreement (the "Facility Agreement") with the parent company of one of its major shareholders, to provide Optare with up to £750,000 to support its ongoing operational and working capital requirements.

The Facility agreement has a maturity date of 19 February 2011 unless varied by mutual agreement and carries interest on the same terms as the existing facility, which is at 8 percentage points above base rate per annum.

The Facility Agreement is classified as a related party transaction in accordance with the AIM Rules by virtue of it being with the parent company of one of Optare's substantial shareholders.  Accordingly, the independent directors, having consulted with the Company's nominated adviser, consider the terms of the Facility Agreement to be fair and reasonable insofar as the Company's shareholders are concerned. 

For further information please contact:

Optare plc Jim Sumner - Chief Executive

Tel: [phone]

Cenkos Securities plc Stephen Keys/Camilla Hume

Tel: [phone]

 

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