Source - RNS
RNS Number : 1983L
Arricano Real Estate PLC
29 September 2016

29 September 2016


Arricano Real Estate plc

("Arricano" or the "Company")


Loan Assignment and Amendment

Arricano (AIM: ARO) announces that the loan facility it currently has with Bytenem Co Limited ("Bytenem") (the "Loan") is being assigned by Bytenem to Retail Real Estate OU ("RRE OU"), a company controlled by Hillar Teder. The principal outstanding under the Loan is US$16.14 million plus accrued interest of approximately US$4.69 million. The Loan has a repayment date of 30 June 2017 and is subject to an interest rate of 12.00% per annum.

Arricano and Bytenem have agreed that on assignment, the Loan principal amount will be increased to a maximum amount of US$18 million which will provide Arricano an additional facility to drawdown a further US$1.86 million, at RRE's sole discretion and subject to availability of funds.

As consideration for the assignment, RRE OU will pay Bytenem US$20.84 million (comprising the principal outstanding and the accrued interest above).  The Company has consented to the assignment and amendment of the Loan, which will remain in place as a liability of the Company with its other terms unaffected by the assignment.

Bytenem and RRE OU are controlled by Hillar Teder, who controls 55.45% of the issued ordinary share capital of the Company, and consequently the assignment of the Loan is deemed to be a Related Party Transaction under the AIM Rules.  The independent directors of the Company (Rupert Cottrell, Philip Scales and Michael Zampelas) consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.


For further information, please contact:

Arricano Real Estate plc

Mykhailo Merkulov

Tel: +380 44 569 6708

Nominated Adviser and Joint Broker

Smith & Williamson Corporate Finance Limited

Azhic Basirov


Tel: +44 (0)20 7131 4000

Joint Broker

Whitman Howard Limited

Ranald McGregor-Smith


Tel: +44 (0)20 7659 1234

Financial PR


Tim Robertson/Ben Heath


Tel: +44 (0)20 3151 7008


This information is provided by RNS
The company news service from the London Stock Exchange

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