Uvenco UK : Debt restructuring

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Uvenco UK plc ­ UVEN

Debt restructuring

Released 07:00 15­Aug­2016

RNS Number : 1246H Uvenco UK plc

15 August 2016

Uvenco UK plc

15 August 2016

Debt restructuring

Uvenco UK plc ("Uvenco", the "Company" or the "Group") announces that it has today entered into an agreement to settle the Group's £2.4 million outstanding bank facility for

£1.0 milion, payable in cash.

On the same date the Company, through its subsidiaries Uvenco Limited, Simply Drinks Limited and Drinkmaster Limited, has entered into a £1.3 million debt facility agreement ("Reward Agreement") with Reward Invoice Finance Limited, part of the Reward Finance Group (''Reward''), a Manchester and Leeds based alterna翿ve lender, in order to provide the funds to sa翿sfy the bank facility settlement, as well as addi翿onal working capital. The terms of the Reward Agreement reflect the expected short‐term nature of the debt and are structured around a confiden翿al invoice discoun翿ng facility, together with a charge on other balance sheet assets including property and vending machines. Cash interest of 1.75% per month will be payable monthly in arrears on the principal outstanding. The loan has a minimum term of 2 months after which the Group can terminate, whilst Reward cannot terminate before August 2017, in each case on one month's no翿ce. Reward have also been granted a personal guarantee by Boris Belotserkovsky in rela翿on to this facility. Ini翿ally the Group will be borrowing £1.2 million, with a further £0.1 million available condi翿onal upon the Company arranging a new equity investment of £0.1 million. The Group intends to take this up in due course.

Sergei Kornienko Chief Execu翿ve of the Company, commented: "This one off opportunity provided us with a significant further step towards the reshaping of our Balance Sheet. We are indebted to Reward for how quickly they have enabled us to maximise the opportunity, however the ul翿mate success of the transac翿on will depend upon the speed with which we replace the Reward lending with more conven翿onal debt.''

Enquiries

Uvenco UK plc Tel No. 020 8879 8300 Sergei Kornienko

Peter Goodman

Stockdale Securi翿es Tel No. 020 7601 6100

Tom Griffiths Richard Johnson

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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Debt restructuring ‐ RNS