| Wed 25 Jan 2012, 17:36 | | YRK - York Timber Holdings Limited - York announces the securing of a |
|
YRK
YRK
YRK - York Timber Holdings Limited - York announces the securing of a
R600 million term loan facility from The Land Bank
York Timber Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1916/004890/06)
JSE Share code: YRK
ISIN: ZAE000133450
("York" or "the Company")
YORK ANNOUNCES THE SECURING OF A R600 MILLION TERM LOAN FACILITY FROM THE LAND
BANK
York advises shareholders that during the latter part of December 2011 it
entered into a R600 million term loan facility agreement with The Land and
Agricultural Development Bank of South Africa ("the Land Bank") (the "Term
Facility") which will replace, inter alia, the existing Rand Merchant Bank
Senior Term Loan and Mezzanine Loan Facilities.
The Term Facility is for a period of ten years from the date of first draw down
which is anticipated to be in February 2012. The terms and covenants of the Term
Facility have been formulated to enhance and facilitate the growth of the
business operations of York and its subsidiaries. The Term Facility will bear
interest at the prevailing prime rate plus 1 percent over the ten year period,
the inclusive rate currently being 10%. This compares favourably to York`s
existing weighted interest margin of 6.2% above a 3 month JIBAR rate, currently
being 11.8%.
Commenting on the securing of the Term Facility, CEO Pieter van Zyl said "The
refinancing was the final step in completing the restructuring and alignment of
York to current market conditions. York is better positioned to explore various
growth opportunities as a result of the conclusion of the Term Facility".
The Term Facility will be available to be drawn down during February 2012 once
all the suspensive conditions (all of which are customary for a transaction of
this nature) have been fulfilled or waived, as the case may be. One of the
suspensive conditions to the Term Facility is the entering into of a
subordination agreement between York and its wholly owned subsidiary York
Timbers Proprietary Limited (the "Subordination Agreement"). The Subordination
Agreement will be entered into following the adoption of special resolution
number 3 ("the Special Resolution") to be proposed to shareholders at York`s
annual general meeting to be held on Monday, 6 February 2012. Details of the
Special Resolution are set out in the notice of annual general meeting which was
posted to York shareholders on 23 December 2011 and which is available
electronically on the Company`s website www.york.co.za.
The Special Resolution grants a general authority for the provision of financial
assistance by the Company in terms of sections 44 and 45 of the Companies Act,
71 of 2008 ("General Authority"). Over and above enabling the Company to provide
the Land Bank with security in respect of the Term Facility, the General
Authority will greatly assist the Company in, inter alia, making inter-company
loans to subsidiaries as well as granting letters of support and guarantees in
appropriate circumstances. The existence of the General Authority will allow the
Company to grant financial assistance without the need in each instance to refer
to shareholders for approval which might impede negotiations and add time and
expense. The General Authority would also authorise the provision of financial
assistance to any of the Company`s directors, or prescribed officers or to any
other person who is a beneficiary of the York share incentive scheme to
facilitate participation in the scheme. However, York will not provide any
financial assistance to any of the Company`s directors or prescribed officers in
terms of the General Authority without again seeking specific shareholder
approval for such assistance. To the extent required, the Special Resolution
will be amended at the annual general meeting to be held on 6 February 2012 to
give effect to this restriction.
Sabie, Mpumalanga
25 January 2012
Sponsor: One Capital
Date: 25/01/2012 17:36:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
