('Inland' or the 'Company')
Inland Repays entire RBS Facility
Inland, which specialises in buying brownfield sites and enhances their value by obtaining planning permission, is pleased to announce that it has repaid its entire loan facility from the Royal Bank of Scotland ("RBS"). Following the release of all the relevant security a substantial part of the group's land portfolio will be unencumbered.
By way of background, on 4 May 2010 Inland plc entered into a revolving facility with RBS of £9.3m reducing periodically to £5.5m at expiry on 30 June 2011. The facility provided that RBS should receive inordinately high fees if repayment was not made by 31 December 2010 such that if the outstanding balance of £1,900,000 had remained outstanding for the full term, total charges in excess of 95% pa would have been incurred. The Company was determined to avoid paying fees at this extreme level.
The Company currently has net debt of £3.5m representing gearing of 7.9% based on the net assets at 30 June 2010.
Stephen Wicks, Chief Executive commented:
"We are delighted to have repaid RBS's loan in its entirety and with the very low level of borrowings Inland will generate significant free cash flow from its land disposals whilst continuing to secure the next generation of new large scale projects. We continue to remain confident about our strategy for the future trading prospects"
Stephen Wicks, Chief Executive Tel: 01494 762450
Nishith Malde, Finance Director Tel: 01494 762450
FinnCap Nominated Adviser & Broker
Matthew Robinson (Corporate Finance) Tel: 020 7600 1658
Henrik Persson (Corporate Finance) Tel: 020 7600 1658
Jeremy Garcia / Christian Goodbody Tel: 020 7466 5000