PRESS RELEASE Huntingdon Life Sciences Group plc
("Huntingdon") (NYSE/SEAQ:HTD)
Woolley Road, Alconbury, Huntingdon
Cambs PE28 4HS, England
For Further Information:
Richard A. Michaelson
Phone: UK: +44 (0) 1480 892194
US: (201) 525-1819
e-mail: [email protected]
August 14, 2000
HUNTINGDON ANNOUNCES REFINANCING
Huntingdon, England, August 14, 2000 - Huntingdon Life Sciences Group plc
(NYSE:HTD) announced today that it has entered into an agreement in principle
with FHP Realty LLC, a private US investment firm affiliated with current
directors, officers and shareholders of Huntingdon, to effect a refinancing of
the Company's existing bank debt.
The proposed refinancing contemplates sale/leaseback transactions of the
Company's Princeton Research Center and Huntingdon Research Center and a new $15
million, asset-backed lending facility for the Company from a US-based lender.
Proceeds from the FHP Realty transaction will be used to repay in full the
Company's current bank indebtedness, with any excess proceeds to be available to
additionally support the Company's working capital requirements.
The sale/leaseback transactions would provide the Company with long-term (20-25
year) leases, with options for further extensions. The Company's current bank
facility, which had been scheduled to expire on August 31, 2000, has been
extended to provide time to complete these transactions, which are expected to
be completed by October 31, 2000.
Huntingdon's Chairman, Andrew Baker, said "Our objective has always been to
provide secure, long term financing for the company and we believe this
transaction achieves that aim as we use the Company's substantial asset base to
support its capital structure. This would refinance all of our existing bank
debt, and allow us to return our full attention to continuing the impressive
business growth that we have achieved in the last 2 years."
Brian Cass, Huntingdon's Managing Director, said "This is good news for us, for
our clients, for our shareholders and for our industry. We believe it will
provide a sound financial base for Huntingdon which benefits all our
stakeholders. Clients can be reassured that we will continue to provide leading
levels of science and service to help in the development of their compounds.
With the widely acclaimed potential of the 'gene economy' to be unfurled over
the coming years, Huntingdon is now in a strong position to benefit through
growth and the extension of its business."
The transactions described above are subject to final documentation and the
customary corporate and regulatory approvals, including the approval of the
Company's shareholders. Full details of the transactions will be provided in a
circular the Company expects to mail to shareholders within 60 days.
This announcement contains statements that may be forward-looking as defined by
the USA's Private Litigation Reform Act of 1995. These statements are based
largely on Huntingdon's expectations and are subject to a number of risks and
uncertainties, certain of which are beyond Huntingdon's control.
Huntingdon Life Sciences Group plc is one of the world's leading CROs providing
product development services to the pharmaceutical, agrochemical and
biotechnology industries. Huntingdon operates research facilities in the United
Kingdom (Huntingdon and Eye, England) and the United States (The Princeton
Research Center, New Jersey).
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