St Helens Finance plc

April 06, 2009 02:00 ET

Private Placing

                                                                                      6 April 2009
                                      St Helen's Finance Plc
                              ("St Helen's Finance" or "the Company")

                                          Private Placing
                                  Unsecured Convertible Loan Note

Following  on  from  the release of the Audited Annual Results to December  31  2008,  St  Helen's
Finance  Plc,  the  PLUS quoted independent provider of asset finance facilities,  is  pleased  to
advise  that the Board of Directors have approved a Private Placing to raise up to £2 million  via
an Unsecured Convertible Loan Note ("Loan Note").

The  Loan  Note  will carry a coupon of 8.50% with a conversion price of 9.50p, expiring  on  31st
December 2013.

The Directors intend to use the funds raised from the issue of these Loan Notes for two purposes:-

    1.      To  facilitate the structure of a subsidiary company with a minimum of £250K as issued
            share capital, formed to enable a new Legal Sector product to be launched.
    2.      The remainder of the funds will be used as expansion capital, to facilitate the growth
            across the identified asset classes and thereby enable the Company to increase the number of
            transactions within these sectors.

Quoting on the above, Norman Kenvyn, Managing Director said

         "The  leasing and finance industry is going through a period of significant change; banks
reducing  debt facilities and general access to capital markets all but evaporating. At  the  same
time  borrowers  are being squeezed on their own facilities. The net result is that  a  number  of
lessors  have  withdrawn  and  others are having to pull back from  the  market  which  leaves  an
underlying  requirement for asset finance, with substantially reduced competition and where  there
is  a greater opportunity to increase returns. The Board wishes to take advantage of this and  has
revised it strategy accordingly".

Details of the Placing will be sent to the Shareholders alongside the Audited Annual Report to  31
December 2008.

The Directors note that there are already debt instruments in place,

Date Issued             Amount       Coupon    Option Price        Conversion         New Ordinary
                                                                      Date               Shares
Jul 2007               £70,000        6.0%        13.5p            31 Dec 2011            518,519
Jul 2007              £930,000        7.5%        17.0p            31 Dec 2011          5,470,587
Dec 2008               £50,000        8.5%         n/a              1 Jan 2012                n/a
Jan 2009              £100,000        9.5%         n/a              1 Jan 2012                n/a

If  the  issued convertible loan notes are fully converted and all the staff options are exercised
there will be a total of 27,838,309 shares in issue.
             The Directors of the issuer accept responsibility for this announcement.


ST HELEN'S FINANCE PLC                                    Tel: 020 7628 4004
Norman Kenvyn - Managing Director
Rick Abbott - Chairman

RIVINGTON STREET CORPORATE FINANCE                        Tel: 020 7562 3373
Leo Godsall                      Eran Zucker          

BISHOPSGATE COMMUNICATIONS LTD                            Tel 020 7562 3394
Gemma O'Hara   

Contact Information

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