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Progility Set To Issue Redeemable Loan Stock As It Looks To Grow

July 1, 2014

Samuel Agini

LONDON (Alliance News) - Progility PLC Tuesday said it has created up to GBP50.0 million of redeemable loan stock, which it intends to list on the Channel Islands Securities Exchange, as it looks to raise funds to support the growth of its existing businesses and to make sizeable acquisitions.

In a statement, the project management services group said that the loan stock, which was created through a special purpose vehicle, will carry interest at a fixed rate of 12% a year and will be unsecured. The loan stock will be repayable in five years' time from issue. Progility said it will be able to prepay the loan stock at any time without penalty. Any notes repaid will be available for reissue until six months before the loan stock matures.

Progility said that it is yet to issue any loan stock. It said it will consider issuing loan stock to investors "in connection with specific transactions."

"Our objective is to build a substantially larger and more profitable business. In the immediate future we are looking to continue to grow our existing operations and to acquire businesses which represent material additions to the group. This new facility will provide us with a mechanism to access additional funding sources in pursuit of our growth strategy which we will employ as the occasion demands alongside the funding sources of equity and bank debt," Executive Chairman Wayne Bos said in a statement.

Progility shares, which are listed on the London Stock Exchange's AIM market, were Tuesday quoted at 5.50 pence, down 2.2%.

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Source: Alliance News

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