Renewal of banking facility

RNS Number : 6353C

Optare PLC

17 November 2009

 



Optare plc

("Optare", the "Company" or the "Group")

Renewal of banking facility 

Optare is pleased to announce that it has successfully renewed the Group's banking facilities.  

The Company has entered in to a £2.5 million overdraft facility to replace the Group's existing facility. The terms of this agreement are the same in all material respects as those of the facility being replaced other than a modest increase in loan margin pricing reflecting current credit market conditions.  

Financial covenants on the Group's existing term and mortgage loans have also been reset to more appropriate levels.  As previously stated the Group's Rotherham site is up for sale and the proceeds of the sale will be used to pay down the mortgage loan.

Jim Sumner, CEO, commented "In the current difficult credit market conditions, this successful financing reflects our bank's valued support. The renewed facility, along with the funds received from the recent Placing means the Group is well placed to execute its strategy."

Enquiries:

Optare plc Jim Sumner - Chief Executive Mike Dunn - Chief Financial Officer

Tel: [phone]

Cenkos Securities plc Stephen Keys/Camilla Hume

Tel: [phone]

 

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