Issue of Loan Notes

RNS Number : 0737B

Peel Hotels PLC

11 April 2012

 



Peel Hotels Plc

Creation of £1,000,000 7% Unsecured Loan Notes 2013

Peel Hotels Plc (the "Company") announces that the Board of Directors of the Company has resolve to create up to £1,000,000 of Loan Notes (the "Loan Notes"), of which £850,000 is now being issued by way of a subscription for £350,000 of Loan Notes by Robert Peel (a Director and substantial Shareholder of the Company, owning 5,496,900 shares - representing 39.2% of the Company) and by way of subscription for £500,000 of Loan Notes by Charles Peel (also a substantial Shareholder, owning 2,608,748 shares - representing 20.3% of the Company).

The funds will be used to meet short-term forecast peak borrowing requirements beyond the Company's agreed Bank overdraft facility.

The Loan Notes, which are unsecured, carry a 7% per annum coupon (payable quarterly) and are repayable as to 50% on 30 June 2013 and as to the balance on 31 December 2013, or earlier in other limited circumstances including certain events of default.  The Loan Notes may also be repaid at any time at the discretion of the Company. 

As Robert Peel is a Director and a substantial shareholder of Peel Hotels and Charles Peel is a substantial shareholder of Peel Hotels, the subscription by them of £850,000 in aggregate of the Loan Notes constitutes a related party transaction under the AIM Rules for Companies. 

The Directors of the Company, other than Robert Peel, having consulted with Peel Hunt LLP, the Company's nominated adviser, consider the subscription by Robert and Charles Peel for an aggregate £850,000 of the Loan Notes to be fair and reasonable insofar as Shareholders are concerned. 

For further information please contact:

            Capel Irwin                                                                    Robert Peel

            Peel Hunt LLP                                                                Peel Hotels Plc

            Tel: [phone]                                                        Tel: [phone]

 

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