CLS Holdings PLC

Capital/Financing Update • Oct 25, 2017

National Storage Mechanism | Additional information

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RNS Number : 6101U

CLS Holdings PLC

25 October 2017

CLS Holdings plc

("CLS", the "Company", the "Group")

Early redemption of outstanding

10.765% Amortising Bonds due 2025

CLS Holdings plc announces that its subsidiary company has today given formal notice to redeem early its outstanding £23.5 million 10.765% Amortising Bonds due 2025 (the "Amortising Bonds").  The Amortising Bonds will be redeemed in full on 4 December 2017 at a redemption price of £141.112 per £100 principal amount of bonds outstanding on the date of redemption, together with accrued interest, equating to a total payment of £33.1 million plus accrued interest.  The payment will be financed from existing cash resources of the Group, and will reduce the Group's tax payable in 2017 by £1.8 million.

The Amortising Bonds comprise the only remaining debt secured against New Printing House Square, 214/236, Gray's Inn Road, WC1, representing a loan to value of less than 20%; this property is expected to be refinanced in 2018.

On redemption of the Amortising Bonds, the Group's pro forma weighted average cost of debt will fall to 2.70% (30 June 2017: 2.94%) and annual cash flow from operating activities will increase by £2.0 million.

The effect of redeeming the Amortising Bonds will be accretive to EPRA earnings initially by 0.5 pence per share and EPRA net asset value will fall by 0.7%, or 1.9 pence per share.

Fredrik Widlund, Chief Executive Officer of CLS, said:

"The Amortising Bonds comprise the last remaining expensive legacy debt of the Group.  By redeeming the Bonds the weighted average cost of debt becomes the lowest in the Group's history.  Further, we will be in a position to refinance New Printing House Square, adding around £50 million net to liquid resources whilst still reducing the overall annual interest payable of the Group and, in enhancing earnings per share, underpinning the dividend."

For further information, please contact:

CLS Holdings plc     

www.clsholdings.com   +44 (0)20 7582 7766

Fredrik Widlund, Chief Executive Officer

John Whiteley, Chief Financial Officer

Liberum Capital Limited

+44 (0)20 3100 2222

Richard Crawley

Jamie Richards

Panmure Gordon (UK) Limited

+44 (0)20 7886 2500

Dominic Morley

Andrew Potts

Elm Square Advisers Limited   +44 (0)20 7823 3695

Jonathan Gray

Smithfield Consultants (Financial PR) +44 (0)20 3047 2476

Alex Simmons

This information is provided by RNS

The company news service from the London Stock Exchange

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