7th Apr 2014 09:21
LONDON (Alliance News) - Westminster Group PLC Monday said the cash interest it pays each year is set to fall, after holders of its loan notes said they intend to convert them into equity.
In a statement, the security and defence company said holders of its 10% secured convertible loan note, which was issued in June 2013, intend to convert GBP220,000 of the note into 628,571 new shares, at a conversion rate of 35 pence.
Westminster said the development means its annual cash interest cost will be reduced by GBP22,000 to GBP60,000.
The company will have GBP575,0000 in outstanding debt after conversion, meaning its outstanding debt has fallen by 83% since June 2013.
The new shares are expected to begin trading on AIM on or around Thursday.
Westminster Group shares were Monday quoted at 73.38 pence, up 2.6%.
By Samuel Agini; [email protected]; @samuelagini
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