Refinancing Discussion Update

RNS Number : 5519U

Northgate PLC

26 June 2009

 



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26 June 2009

NORTHGATE PLC

Refinancing Discussion Update

Northgate plc ('Northgate' or the 'Company'), the UK and Spain's leading specialist in light commercial vehicle hire by fleet size, today provides an update on its banking discussions.

In the announcement made on 30 April 2009, the Company stated that its banks and private placement note holders had agreed to defer the date of certain of the covenant tests to 30 June 2009.

The Company has now reached agreement in principle on the terms of a refinancing with its major lenders. This refinancing is subject to final credit and investment committee approval from the Company's banks and private placement note holders, which is currently in progress and agreeing final documentation. It is also conditional upon, inter alia, an equity fundraising. Pending the anticipated completion of this process, the banks and private placement note holders have agreed a second deferral of the date of certain of the covenant tests from 30 June 2009 to 31 August 2009.

The Company will provide a further update at the time of its preliminary results announcement, expected to be in mid-July.

-ENDS-

For further information, please contact:

Northgate plc                                                                         01325 467558

Steve Smith, Chief Executive  

Bob Contreras, Finance Director  

RBS Hoare Govett Limited                                                 020 7678 8000 

Andrew Foster  

John MacGowan  

Stephen Bowler  

Oriel Securities Limited                                                       020 7710 7600 

Emma Ormond  

David Arch

Rothschild                                                                             0113 200 1900

David Forbes

Hogarth Partnership                                                            020 7357 9477

Andrew Jaques

Anthony Arthur

Simon Hockridge

 

END

 

 

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