10th May 2016 09:29
LONDON (Alliance News) - Sound Energy PLC said Tuesday it has signed heads of terms with Greenberry PLC for it and other investors to subscribe for bonds, which the company is issuing to provide it with additional funding and to simplify its corporate debt structure.
This will involve subscribers acquiring privately placed 5 year non-amortising bonds with a total par value of at least EUR28.8 million and a 5% coupon.
The bonds will be issued at a 32% discount to par and will attract a total cash fee of EUR1.1 million, and will be secured upon shares of Sound Energy's subsidiary Sound Energy Holdings Italy Ltd, which holds its Italian assets.
Sound Energy also plans to issue 70.3 million warrants to subscribe for new shares in the company at an exercise price of 30 pence per share for a period of up to 5 years from the date of issue.
Shares in Sound Energy were down 1.3% at 16.66 pence Tuesday.
The company will use the funds to pursue its growth strategy, and to repay in full a EUR7 million lending facility that matures in November, as well as its existing GBP7 million corporate loan from Greenberry due to be repaid in July next year.
A GBP1 million loan provided by Sound Energy's Chairman Simon Davies will remain in place until it expires July 2017, the company said.
"I am pleased to announce these heads of terms ahead of the results of our first strategic play at Tendrara, onshore Morocco, and in spite of the difficult sector backdrop," said Chief Executive Officer James Parsons in a statement.
"The bond demonstrates both the growing maturity of our portfolio and our proactive approach to financial management," Parsons added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
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