UPDATE 2-Raymarine says close to loan limit; seeks funds or sale

* Says continues to trade broadly in line with market view

* Global sales in May were in line with its view

* Sales remained low in the US as destocking continued

* Shares fall as much as 25 pct (Adds details, analyst's comment, updates share to close)

BANGALORE, June 12 (Reuters) - Raymarine Plc RAY.L, a supplier of electronic equipment to the marine market, said it was operating close to the limit of its current bank facilities and that it was exploring an equity fundraising or a sale of the business.

Shares of the company, which makes fishfinders, autopilots, marine radar and GPS systems for leisure boats, fell as much as 25 percent to 14.75 pence on Friday.

Raymarine said in the absence of either equity fundraising or a sale, it would seek to secure additional medium-term debt facilities with its banking group.

The company said its banking group has shown a willingness to enter into talks related to the covenants and, if necessary, may consider providing additional short-term funds while the medium-term funding options were investigated.

For the full year ended Dec. 31, the company's net debt was 93.5 million pounds, after 19.7 million pounds of foreign exchange movement.

Buyers would baulk at paying Raymarine's current net debt value at this stage, Panmure Gordon & Co analyst Oliver Wynne-James said by email.

The analyst said either Norway-based Navico or U.S.-based navigation device maker Garmin (GRMN.O) could be potential buyers for Raymarine.

Both companies, however, do not need to buy it "as they are busy enough with their own marine electronic assets," Wynne-James said.

The recreational boating industry is facing a sharp downturn as consumers are spooked by the recession.

"The 2009 season for marine electronics is a write-off now," Wynne-James said.

Raymarine said in April it expected to make a pretax loss for the current year ending Dec. 31.

On Friday, the company said it continues to trade broadly in line with market view and that the global sales in May met its expectations.

Sales remained low in the United States as both original equipment manufacturers and retail channels continued to destock, while sales were slightly weaker-than-expected in the UK and rest of the world, it said.

Shares of the company closed down 14 percent at 17 pence on the London Stock Exchange. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Anil D'Silva, Anne Pallivathuckal)