The Board of Peel Hotels Plc announced that the company on 19 September 2017 entered into a £9,900,000 5-year term loan facility with Allied Irish Bank. The Facility was drawn down in full and attracts a rate of interest of 2.7% above LIBOR for the relevant Interest Period. As specified in the announcement by the Company on 20 July 2017 of its Final Results for the Financial Year Ended 29 January 2017, the Facility will be used by the Company to repay the Group's existing facilities with the Royal Bank of Scotland Plc as well as the remaining balances of the director's loans and Loan Notes. The director's loans and Loan Notes are being repaid in accordance with their terms and the Board's strategy to reduce the Company's debt servicing obligations. Completion of the Facility provides a solid foundation for the Company to deliver its strategic plans by preserving the Group's debt facilities, resetting financial covenant headroom and extending maturities to five years from the date of drawdown. The revised financing structure will result in a significant reduction in financial charges going forward. Savings in the 2018/19 financial year are estimated to be not less than £160,000, provided that LIBOR remains unchanged.