REG - Orchard Funding Grp - Acquisition of Orchard Bond Finance PLC

Orchard FundingAnnouncement

02/12/2021 07:00

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RNS Number : 2439U  Orchard Funding Group PLC  02 December 2021

 

2(nd) December 2021

 

Orchard Funding Group PLC

 Acqusition of Orchard Bond Finance PLC

Orchard Funding Group PLC ("Orchard", the "Group" or "Company"), the finance
group which specialises in insurance premium finance and the professions
funding market, announces that it has acquired Orchard Bond Finance PLC
("Orchard Bond Finance") (the "Acquisition").

Orchard Bond Finance is a dormant shell company which was acquired for nominal
consideration from the Group's CEO and Orchard Bond Finance's sole
shareholder, Ravi Takhar. The Acquisition does not constitute a related party
transaction pursuant to AIM Rule 13.

Orchard intends to utilise Orchard Bond Finance as a vehicle to raise
liquidity for the Group through a potential listed bond issue in 2022 (the
"Bond Issue"). Should the Board resolve to proceed with the Bond Issue, it is
proposed that the bonds would have a five year life, pay a target annual
coupon of circa 6 per cent. and be partially guaranteed by the Company to up a
value of 10 per cent. of the principal value of the bonds. Subject to
completion of the Bond Issue, the Group intend to apply for the bonds to be
admitted to the FCA's Official List and admitted to trading on the London
Stock Exchange's Order Book for Fixed Income Securities market.

The timing and launch of the proposed Bond Issue will be subject, amongst
other factors, to prevailing market conditions. Further updates will be made
in due course.

For further information, please contact:

Orchard Funding Group
PLC
+44 (0)1582 346 248

Ravi Takhar, Chief Executive Officer

Liberum (Nomad and
Broker)
+44 (0)20 3100 2222

Neil Patel

Lauren Kettle

 

For Investor Relations please go to: www.orchardfundinggroupplc.com
(http://www.orchardfundinggroupplc.com/)  This announcement contains inside
information for the purposes of Article 7 of EU Regulation 596/2014. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

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