Hedgie scores stake in Rangers after offering up £1m in loans
HEDGE fund Laxey Partners yesterday moved to consolidate its control of Glasgow’s Rangers Football Club after contributing to a £1.5m loan, which it can turn into shares in the club.
The $2bn activist investor, which is already Rangers’ biggest shareholder with an 11.64 per cent stake, has lined up alongside the club’s director Sandy Easdale to offer the credit facility to the struggling club.
Laxey will lend £1m for a fee of £150,000, while Easdale will temporarily turn over £500,000 to the troubled football giant until 1 September, when the repayment is due.
As part of the deal, Laxey has the opportunity to convert the debt into equity at a rate of either 26.5p or the level of any future fundraising, whichever is lower.
Property next to Rangers’ iconic stadium Ibrox will be used to secure the loan. Edmiston House and the Albion car park are secured against both Laxey’s and Easdale’s loan.