MSQ Media Square

TIDMMSQ

RNS Number : 2249T

Media Square PLC

02 December 2011

Media Square plc

Property Disposal and Banking Facilities

The Board of Media Square plc (AIM: MSQ), the international marketing communications group, today announces that Writtle Holdings Ltd have indicated that it is their intention to complete, in the immediate future, the purchase of the freehold property owned by MSQ at Studlands Park in Newmarket for a consideration of GBP3.25 million. Writtle have stated that they intend to complete the purchase pursuant to the option over the freehold property that was granted to them at the time of their purchase of the trade and assets of arken POP Ltd, the former owner of the freehold property, in February 2011

The proceeds from the disposal will be paid directly to MSQ's Bank to reduce the Group's overall level of debt. GBP0.7 million of the proceeds will be used to pay off the existing property loan associated with the asset, with the balance being set against the Group's mezzanine loan. The transaction will reduce long-term debt but will not change the position with regard to the Group's overall level of cash headroom.

As previously announced, the Board of Media Square is in discussions with its Bank about the provision of a new long-term banking facility and has been undertaking a detailed 12 month cash flow forecast exercise. As part of this process, the Group has now requested additional facilities from its Bank to ensure it is able to meet future working capital requirements and certain revisions to its existing covenant regime.

The Group will continue to keep shareholders informed and make further announcements as appropriate.

Enquiries please contact:

 
 Media Square plc            www.mediasquare.co.uk 
 Roger Parry                 020 3026 6601 
 Peter Reid                  020 3026 6607 
 
 Collins Stewart (Nominated Adviser and Broker) 
 Matt Goode / Adam Miller    020 7523 8350 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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