Further re Credit Facility

RNS Number : 7777W

Rangers Int. Football Club PLC

12 November 2014

 



12 November 2014

Rangers International Football Club plc

("Rangers" or the "Company")

Further re Credit Facility

The Board of Rangers announces that MASH Holdings Limited ("MASH") has agreed to increase the £2m credit facility (the "Facility") announced on 27 October with The Rangers Football Club Limited ("RFCL"). MASH shall make available the additional sum of £1 million for drawdown by the Company on 26 November 2014. All other terms remain the same.

During the Autumn, the Club has suffered from lower than expected match attendance which has exacerbated the financial condition of the business The Directors have begun a cost cutting exercise, but further working capital in addition to the Facility will be needed before the end of the year.

MASH is a shareholder in the Company holding 8.92% of the voting rights in the Company. MASH also has an indirect holding in Rangers Retail Limited, a 51% owned subsidiary of RFCL. MASH is a Related Party under the AIM Rules and accordingly the Facility is a Related Party Transaction pursuant to AIM Rule 13. The Board discussed offers of finance in detail with two different potential funders over a period of time and also had discussions with an additional potential funder who expressed interest at the end of the period of the Board's discussions with the two original potential funders. Following such discussions, the Independent Directors comprising David Somers, Norman Crighton and James Easdale ("Independent Directors") narrowed down the immediately available funding options to two proposals, being those which were able to provide proof of immediately available and uncommitted funds and proof of the identity of the funders. As such the Independent Directors identified the two proposals that were, in their opinion, capable of immediate delivery. Having assessed these two proposals, the Independent Directors also consulted with major shareholders holding a majority of the voting rights in the Company. Following such shareholder consultations and with the support of such shareholders, the Board resolved to enter into the Facility. The Independent Directors, consider, having consulted with Daniel Stewart its nominated adviser, that the terms of the Facility are fair and reasonable insofar as shareholders of the Company are concerned. The Independent Directors would like to thank all the individuals who showed an interest in helping the Company.

For further information please contact:

Rangers International Football Club plc	Tel: [phone]
David Somers
Daniel Stewart & Company plc	Tel: [phone]
Paul Shackleton / David Coffman
Newgate Threadneedle	Tel: [phone]
Roddy Watt / John Coles

 

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