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Centric Health Announces Early Conversion of July 2017 Convertible Notes and April 2018 Convertible Loan and Signs Indicative Term Sheet for Refinancing of Remainder of Outstanding Borrowings
Centric Health Announces Early Conversion of July 2017 Convertible Notes and April 2018 Co...
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[{"type":"text","content":"\n\n\n\nCentric Health Announces Early Conversion of July 2017 Convertible Notes and April 2018 Convertible Loan and Signs Indicative Term Sheet for Refinancing of Remainder of Outstanding Borrowings\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, March 2, 2017\n\n\n\n– Conversions Further Reduce Outstanding Debt by $14.08 Million and Facilitate Final Step in Balance Sheet Refinancing and Simplification –\n\n\n\nTORONTO, March 2, 2017 /CNW/ - Centric Health Corporation (\"Centric Health\" or \"the Company\") (TSX:CHH) today announced that the holders of the following two debt instruments have agreed to convert all outstanding principal balances to common shares of Centric Health, pursuant to the terms of each instrument:\n\n\nThe $9.08 million principal amount of unsecured convertible notes maturing July 31, 2017 bearing interest at 6.5% and having a conversion price of $0.52 per share (the \"Convertible Notes\"); and,\nThe $5.00 million principal amount of unsecured convertible loan maturing April 30, 2018 bearing interest at 6.0% and having a conversion price of $0.46 per share (the \"Convertible Loan\").\n\nApproximately 74% of the principal outstanding of the Convertible Notes are held by insiders of the Company and the entire principal outstanding of the Convertible Loan is held by Jamon Investments, LLC, an associated entity of Dr. Jack Shevel, Chairman of Centric Health and Founder and President of Centric Health's largest shareholder, Global Healthcare Investments & Solutions, Inc.\n\nThe conversion of the two debt instruments, in aggregate, further reduces Centric Health's outstanding debt by $14.08 million, bringing the Company's total net debt as of December 31, 2016, pro forma the conversion of the Convertible Notes and Convertible Loans, to $85.2 million, and reducing its annual interest expense by $0.9 million.\n\n\"The early conversion of these two instruments was an important next step in our balance sheet optimization plan to refinance the largest components of our debt, with ...