2012-12-19 09:12:03 -
RNB RETAIL AND BRANDS has entered into an agreement with the company's principal
owner, Konsumentföreningen Stockholm, regarding the refinancing of half of the
Group's existing overdraft facility. The agreement will become effective on
January 1, 2013. The new financing in a total amount of SEK 100 M will apply for
a contractual period of one year at a time and will comprise an overdraft
facility with a credit limit of SEK 100 M. As a consequence from a decision from
the creditor of the current overdraft facility of SEK 200 M will be halved from
January 1, 2013 and be supplemented by the new credit facility from
Konsumentföreningen Stockholm has also granted RNB RETAIL AND BRANDS a committed
line of credit of an additional SEK 50 M. The
committed line of credit will be
available for use when required through March 31, 2013. Should it be utilized,
the credit will run for a period of one year.
"The fact that Konsumentföreningen Stockholm is assuming increased
responsibility for the company's financing increases our opportunities to
evaluate a number of strategic options in order to establish long-term financial
stability. Although, when considered on the whole, the new financing structure
will increase our total interest expenses somewhat, this is the price that has
to be paid for increased financing security. However, the definitive interest
terms and conditions for the loans granted by Konsumentföreningen Stockholm will
be negotiated during the first quarter of the 2013 calendar year," says Magnus
Håkansson, President and Chief Executive Officer of RNB RETAIL AND BRANDS.
RNB RETAIL AND BRANDS has already been granted business financing from the
company's principal owner, Konsumentföreningen Stockholm, totaling SEK 500 M.
The previously granted financing runs until June 30, 2015 and an agreement has
been reached exempting RNB from repayment of the principal to that date. With
the new credit facility that has been granted as of January 1, 2013, financing
to RNB RETAIL AND BRANDS AB from Konsumentföreningen Stockholm totals SEK 600 M.
To this should be added the committed line of credit of a further SEK 50 M.
For further information, please contact:
Magnus Håkansson, CEO, RNB RETAIL AND BRANDS AB,
+46 8 410 520 02, +46 768 87 20 02,
The information is such that RNB RETAIL AND BRANDS AB (publ) is required to
disclose in accordance with the Swedish Financial Instruments Trading Act and/or
the Swedish Securities Market Act. The information was submitted for publishing
on December 19, 2012, at 08.55 a.m.
RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing,
accessories, jewelry and cosmetics stores that focus on providing excellent
service and a world-class shopping experience. Sales are mainly conducted in
Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn
O. Pyret, as well as through shops in the department stores NK in Stockholm and
Gothenburg. RNB RETAIL AND BRANDS has operation in 10 countries. RNB RETAIL AND
BRANDS has been listed on the OMX Nordic Exchange since 2001.
RNB RETAIL AND BRANDS secures new business financing:
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Source: RNB Retail and Brands AB via Thomson Reuters ONE