7th Jun 2016 08:15
LONDON (Alliance News) - Iodine producer Iofina PLC on Tuesday said it has agreed to restructure USD20 million of convertible loan notes, and has secured a USD10 million line of credit to help with its operations and expansion plans.
Iofina has restructured convertible loans of USD15 million issued to Stena Investment Sarl and USD5 million to Panacea Ltd. The interest payable on the loan notes will be reduced to 5% per year from 6%, and the redemption date of the notes has been extended to June 2019.
Additionally, Stena has agreed in principle to extend a USD10 million line of credit at 6% interest paid quarterly in arrears on all funds drawn down by Iofina.
"The directors are pleased to announce the general terms to restructure our entire USD20 million of debt with Stena and Panacea which lowers interest rates, allows for the rollover of this interest to potentially reduce immediate cash payments, and extends the debt to June of 2019," said President and Chief Executive Officer Thomas Becker in a statement.
"The additional USD10 million line of credit with Stena gives Iofina added flexibility to execute business objectives timely. We expect to finalize the details within the next month. Iofina is appreciative of the ongoing support from Stena and Panacea; partnerships which are highly respected and valued," Becker added.
Shares in Iofina were up 12% at 20.24 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
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