VinaLand(VNL) is considering raising £20m by issuing 20m zero dividend preference shares at 100p. The new ZDPs would have a life of three years and the gross redemption yield would be determined by a bookbuild – potential investors will be asked to bid for the ZDPs at yields between 7% and 8%. The issue proceeds will be used to refinance existing bank facilities with the VinaLand group of companies.
Separately VNL announces that it is in discussions that may or may not lead to an offer for all or some of its ordinary shares but cautions that this transaction may not take place and details of the terms of such an offer are still uncertain.
Lastly VNL has secured a standby facility of $1.2m to be used to finance its working capital needs from its investment manager. This comes at a rate of 13% per annum and terminates on 15 June 2015. The manager will also provide a facility on the same terms to cover its accrued management fees (estimated to be c$12.5m). Given the close relationship between VNL and its manager, VNL got Grant Thornton UK LLP to say that the terms are fair and reasonable.