1st Apr 2014 15:23
LONDON (Alliance News) - Reconstruction Capital II Ltd Tuesday said that it has started a period of consultations with its shareholders relating to the issuance of a EUR9.0 million secured convertible bond, in order to repay all its existing liabilities and for additional working capital for the next twelve months.
Reconstruction Capital II, along with its subsidiaries, is engaged in holding and managing of investments in Romania and other countries in South-East Europe.
Shares in the the company dropped 7.8% Tuesday afternoon, to be trading at EUR0.1175 per share.
The group said that that the issuance of the convertible bond is subject to shareholder approval and it is currently anticipated that the opportunity to participate in the convertible will be extended to qualifying shareholders.
Reconstruction Capital II also said that it has secured a EUR6.75 million bridge loan from Ion Florescu, a director of the company. It said it will be applied to repay the existing loan and accrued interest from Northview Investment Fund Ltd of EUR3.75 million, EUR0.75 million of outstanding Director loans, EUR1.5 million to repay outstanding fees to the Investment Manager and Investment Advisers, and also for general working capital purposes until the fundraising is completed.
It said the loan will be for a four month term, carries an interest rate of 12% per year and has no arrangement fee.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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