YRK - York Timber Holdings Limited - York announces the securing of a

YRK - York Timber Holdings Limited - York announces the securing of a           
R600 million term loan facility from The Land Bank                              
York Timber Holdings Limited                                                    
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1916/004890/06)                                           
JSE Share code: YRK                                                             
ISIN: ZAE000133450                                                              
("York" or "the Company")                                                       
YORK ANNOUNCES THE SECURING OF A R600 MILLION TERM LOAN FACILITY FROM THE LAND  
BANK                                                                            
York advises shareholders that during the latter part of December 2011 it       
entered into a R600 million term loan facility agreement with The Land and      
Agricultural Development Bank of South Africa ("the Land Bank") (the "Term      
Facility") which will replace, inter alia, the existing Rand Merchant Bank      
Senior Term Loan and Mezzanine Loan Facilities.                                 
The Term Facility is for a period of ten years from the date of first draw down 
which is anticipated to be in February 2012. The terms and covenants of the Term
Facility have been formulated to enhance and facilitate the growth of the       
business operations of York and its subsidiaries. The Term Facility will bear   
interest at the prevailing prime rate plus 1 percent over the ten year period,  
the inclusive rate currently being 10%. This compares favourably to York`s      
existing weighted interest margin of 6.2% above a 3 month JIBAR rate, currently 
being 11.8%.                                                                    
Commenting on the securing of the Term Facility, CEO Pieter van Zyl said "The   
refinancing was the final step in completing the restructuring and alignment of 
York to current market conditions. York is better positioned to explore various 
growth opportunities as a result of the conclusion of the Term Facility".       
The Term Facility will be available to be drawn down during February 2012 once  
all the suspensive conditions (all of which are customary for a transaction of  
this nature) have been fulfilled or waived, as the case may be. One of the      
suspensive conditions to the Term Facility is the entering into of a            
subordination agreement between York and its wholly owned subsidiary York       
Timbers Proprietary Limited (the "Subordination Agreement"). The Subordination  
Agreement will be entered into following the adoption of special resolution     
number 3 ("the Special Resolution") to be proposed to shareholders at York`s    
annual general meeting to be held on Monday, 6 February 2012. Details of the    
Special Resolution are set out in the notice of annual general meeting which was
posted to York shareholders on 23 December 2011 and which is available          
electronically on the Company`s website www.york.co.za.                         
The Special Resolution grants a general authority for the provision of financial
assistance by the Company in terms of sections 44 and 45 of the Companies Act,  
71 of 2008 ("General Authority"). Over and above enabling the Company to provide
the Land Bank with security in respect of the Term Facility, the General        
Authority will greatly assist the Company in, inter alia, making inter-company  
loans to subsidiaries as well as granting letters of support and guarantees in  
appropriate circumstances. The existence of the General Authority will allow the
Company to grant financial assistance without the need in each instance to refer
to shareholders for approval which might impede negotiations and add time and   
expense. The General Authority would also authorise the provision of financial  
assistance to any of the Company`s directors, or prescribed officers or to any  
other person who is a beneficiary of the York share incentive scheme to         
facilitate participation in the scheme. However, York will not provide any      
financial assistance to any of the Company`s directors or prescribed officers in
terms of the General Authority without again seeking specific shareholder       
approval for such assistance. To the extent required, the Special Resolution    
will be amended at the annual general meeting to be held on 6 February 2012 to  
give effect to this restriction.                                                
Sabie, Mpumalanga                                                               
25 January 2012                                                                 
Sponsor: One Capital                                                            
Date: 25/01/2012 17:36:02 Supplied by www.sharenet.co.za                     
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