New loan for Rangers
Rangers have struck a deal to borrow £1.5million from football board chairman Sandy Easdale and investment group Laxey Partners, the club have announced to the stock exchange.
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The cash-strapped Ibrox outfit made a £14.4million loss in the 13 months up to last June and failed in a bid to persuade Ally McCoist's squad to accept a 15 percent wage cut as they looked for a solution to their money woes.
But now Easdale has stepped in to offer up a £500,000 sum on a no-fee and no-interest basis, while Laxey Partners will lend the club £1million, with both sums secured against the Edmiston House and Albion car park facilities near to Ibrox.
Both loans are repayable by September 1, while Laxey Partners, the club's single-biggest shareholder with an 11.64 percent stake, stand to make a £150,000 profit on their part of the deal.
The Isle of Man-based hedge fund may opt to take repayment in the form of fresh shares, but that would require shareholder backing at an AGM.
Rangers say the cash will be used for working capital over the "next few months".
The League One leaders' raised £22million when they were floated on the stock market in December 2012, but former financial director Brian Stockbridge sparked concerns the club might be heading for administration for a second time last year when he claimed the club would be down to their last £1million by April after burning through the rest of their eight-figure stockpile in little more than 15 months.
But the money loaned to them will now tide them over until season-ticket renewal fees start arriving at the end of the season.
A club statement said: "The board of Rangers is pleased to announce that it has entered into two secured short-term credit facilities for an aggregate of up to £1.5m. The credit facilities are being provided by Alexander Easdale, a shareholder in the company and director of The Rangers Football Club Limited, the wholly owned subsidiary of RIFC, and Laxey Partners Ltd ('Laxey'), a substantial shareholder in the company. These credit facilities will be used by the company for general working capital purposes over the next few months.
"Alexander Easdale will make available to the company up to £500,000 on a fee and interest free basis (the 'Easdale Facility').
"Laxey will make available to the company up to £1 million, with a premium payment equal to 15 percent of the nominal amount of the facility (the 'Laxey Facility').
"The Easdale Facility and the Laxey Facility (together the 'Facilities') are both secured against the company's Edmiston House and Albion car park properties. The principal amounts of the Facilities are repayable no later than 1 September 2014 from a variety of potential sources.
"The premium on the Laxey Facility is payable in cash or, at Laxey's discretion, in ordinary shares of 1p each, at any point between the date of the facility agreement and the first anniversary of the date of the facility agreement. The number of ordinary shares of 1p each which may be issued will be calculated using the lower of either 26.5 pence, being the mid-market closing price of the company's shares on 21 February 2014, or the lowest price at which any equity fundraising is carried out prior to the first anniversary of the date of the Laxey Facility agreement. The issue of any ordinary shares of 1p each in payment of the premium is subject to the company obtaining authority from its shareholders at a general meeting of the company.
"Under the AIM rules for companies, the Laxey Facility is a related party transaction under rule 13 of the AIM rules. The directors of Rangers, having taken advice from their nominated adviser, Daniel Stewart & Company plc, believe that the terms of the Laxey Facility are fair and reasonable as far as shareholders are concerned."