New Bank Facility with Kleinwort Benson Bank Ltd

RNS Number : 9578U

Gresham House PLC

12 April 2016

 

12 April 2016

Gresham House Plc ("Gresham House" or "the Company")

(AIM: GHE)

New Bank Facility with Kleinwort Benson Bank Ltd

Gresham House plc, the specialist asset manager, is pleased to announce as part of its continued strategic development, that it has signed a new £7 million banking facility with Kleinwort Benson Bank Ltd ("Kleinwort Benson"). The borrowing is secured against the Company's property assets and the deferred proceeds of the sale of the Newton-le-Willows site to Persimmon Homes Limited ("Persimmon") announced last September.

The facility will be repayable in three tranches to match the deferred proceeds due from Persimmon, over the next three years accordingly:

·     £2.09m will be repayable on 22 March 2017;

·     £2.09m will be repayable on 22 March 2018; and

·     the balance will be payable on 22 March 2019.

The facility documents include covenants that are customary for a facility of this nature and the interest rate is in line with management's expectations.

Part of the funding is being used to repay the existing Co-operative Bank facility of £2.85 million and pay down the £0.67 million short-term loan notes issued in connection with the acquisition of Aitchesse Ltd. Consistent with supporting the Company's growth strategy, the balance of the proceeds will be utilised for general working capital and investment purposes.

Anthony Dalwood, CEO of Gresham House said,

"This is a further element in the development of our long term plan, and we are pleased we have secured this new facility with Kleinwort Benson. It has enabled us to utilise the legacy property assets of the group to support our strategy of building Gresham House into a specialist asset manager of differentiated and illiquid alternative investment strategies that generate superior long term investment returns."

James Lockyer of Kleinwort Benson said,

"Gresham House is led by an experienced management team and over the past year we have seen rapid progress in pursuance of their strategy to develop a specialist asset manager. We are pleased to be part of the next stage of the Company's development, supporting their plans for growth."

Enquiries:

Gresham House plc Anthony (Tony) Dalwood	020 3837 6270
Kleinwort Benson Bank Ltd Anita Turland	0203 207 7192
Liberum Capital Ltd Neil Elliot Jill Li	020 3100 2000
Montfort Communications, PR Adviser Gay Collins Rory King	[e-mail] 07798 626282 0203 770 7906

 

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