News Column

Toye & Co Tweaks Property Sale Deal To Increase Related Loan

July 9, 2014

Steve McGrath

LONDON (Alliance News) - Toye & Co PLC, the military and masonic regalia, medals, badges and textiles maker that is being taken private by its chairman, Wednesday said it had agreed changes to the contract to sell its Great Queen Street property allowing it to increase a loan facility it has with the property developer so that it can fund working capital needs.

In a statement, Toye said that under the terms of the agreement variation, the completion date for the sale of 19-21 Great Queen Street has been pushed back to January 30, 2015, from July 28, 2014.

The key part of the deal is that the loan facility agreed with the developer has been increased to GBP2.75 million, from GBP2.5 million. The amount undrawn on the new facility, GBP0.75 million, will now be drawn down on July 28.

"The company intends to use the balance of the loan facility to fund additional capital expenditure requirements and the working capital needs of the business," it said in a statement.

It also said that the clause in the original property sale agreement that would, having satisfied certain criteria, see the basic sale price of the property increase by GBP0.5 million has been extended to 19 December 2014.

"There has therefore been no change to the overall consideration to be received in respect of the property and no further interest will be payable on the loan from 28 July 2014," it said.

Toye & Co shares were up 16.1% at 47.00 pence Wednesday morning.

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Source: Alliance News

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