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 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.
25 January 2012
Sponsor: One Capital
distribué par | Ce noodl a été diffusé par York Timber Holdings Limited et initialement mise en ligne sur le site http://www.york.co.za. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-26 12:54:54 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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25 January 2012: York announces the securing of a R600 million term loan facility from the Land Bank |