Retail & consumerMedia
SEC Newgate S.p.A

Porta refinances; settles loan with share issue

Retro Grand is ultimately controlled by Edward Morton, one of the adult sons of Bob Morton, a former director of the company.

"We continue to evaluate our balance sheet and future capital requirements," said finance director Gene Golembiewski

Porta Communications PLC (LON:PTCM), the international communications and marketing group, has restructured its loan arrangement with Virgin Islands-registered Retro Grand Limited.

The company has agreed a replacement facility with Retro Grand to re-finance, on similar terms, the existing convertible loan from Retro Grand, which had a carrying value of £5.0mln as at 30 June 2016.

The face value of the replacement convertible loan is around £5.18mln, while a non-refundable arrangement fee of 1 of the refinanced amount will be payable on the new facility. Interest will be charged at a rate of 1% per month.

In the event of default Retro Grand will have the option of converting the loan into Porta ordinary shares.

Finance director Gene Golembiewski said the refinancing helped secure the financial position of the company over the coming twelve months.

In a separate announcement, Ports said it had agreed the settlement of a debt to a company beneficially owned by Bob Morton, through the issue of 9.12mln new ordinary shares to Morton and his wife.

“This loan conversion represents the first step in optimising the company's capital structure and consolidating our financial position, following the series of start-ups and corporate acquisitions that we have made over the past few years,” Golembiewski said.

Bob Morton is now beneficially interested in 54mln shares, representing around 18.25% of the enlarged share capital of Porta.

Shares in Porta were off 0.125p at 4p in lunchtime trading.

Quick facts: SEC Newgate S.p.A

Price: £0.40

Market: AIM
Market Cap: £9.7 m

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