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26 June 2009
Refinancing Discussion Update
Northgate plc ("Northgate" or the "Company"), the UK and Spain's leading specialist in light commercial vehicle hire by fleet size, today provides an update on its banking discussions.
In the announcement made on 30 April 2009, the Company stated that its banks and private placement note holders had agreed to defer the date of certain of the covenant tests to 30 June 2009.
The Company has now reached agreement in principle on the terms of a refinancing with its major lenders. This refinancing is subject to final credit and investment committee approval from the Company's banks and private placement note holders, which is currently in progress and agreeing final documentation. It is also conditional upon, inter alia, an equity fundraising. Pending the anticipated completion of this process, the banks and private placement note holders have agreed a second deferral of the date of certain of the covenant tests from 30 June 2009 to 31 August 2009.
The Company will provide a further update at the time of its preliminary results announcement, expected to be in mid-July.
For further information, please contact:
Northgate plc 01325 467558
Steve Smith, Chief Executive
Bob Contreras, Finance Director
RBS Hoare Govett Limited 020 7678 8000
Oriel Securities Limited 020 7710 7600
Rothschild 0113 200 1900
Hogarth Partnership 020 7357 9477