1st Jul 2016 09:12
LONDON (Alliance News) - Caledonian Trust PLC on Friday said it has reached an agreement with Leafrealm Ltd to vary the terms of two existing loan notes.
Leafrealm is controlled by Caledonian Trust Chairman and Chief Executive Douglas Lowe.
The first loan note agreement was originally entered into in 2003 and has subsequently had its repayment date extended on several occasions. The GBP1 million loan attracted an interest rate of 3%.
The second loan note agreement was entered into in 2010, for a loan of GBP2.5 million at an interest rate of 3%. The repayment date for the second loan has also been extended on previous occasions. As at June 30, GBP1.7 million of loan notes had been issued to Leafrealm.
In addition, Caledonian Trust has an unsecured loan totalling GBP805,000 also with Leafrealm.
On Thursday, Caledonian Trust said the new agreement covering the total GBP3.5 million loan carries an annual interest rate of 3%, with interest to be paid in quarterly instalments in arrears. Leafrealm has agreed to waive the margin element of the interest from April 1, 2015, until further notice but is entitled to reinstate the margin at any time.
The new loan is not capable of being converted into new shares and has no specific maturity date. It is repayable by the company at any time and is repayable on demand by Leafrealm giving 12 months and 1 day's written notice.
Shares in Caledonian Trust were untraded on Friday, last quoted at 80.75 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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