5th Feb 2015 12:48
LONDON (Alliance News) - Manx Financial Group PLC Thursday said two outstanding convertible loan notes that were due for repayment on March 28 are being extended to secure regulatory capital required by subsidiary lender Conister Bank Ltd.
In a statement, Manx said that the notes, with a value of GBP1.7 million combined, shows the support of Executive Chairman Jim Mellon, who holds GBP1.25 million and Rock Holdings, connected to Non-Executive Director John Banks, which holds GBP460,000, both shareholders in the company.
"Although Conister enjoys high levels of liquidity from customers' deposits, this liquidity must be underpinned by its own separate capital on the basis of a ratio as directed under the Isle of Man banking licence," Manx said.
"As a result, and having considered other methods of raising capital, the independent directors have resolved, following negotiations with the lenders, to extend the two notes for a further five years to February 26, 2020 at a reduced interest rate of 6.5%, down from the previous 9.0%," the company said.
Mellon holds a 17.28% stake in the company, while Banks holds a 25.76% stake through Rock Holdings.
Manx Financial shares were untraded on Thursday. The stock closed at 12.75 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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