Business
Settlement of Convertible Bon
Settlement of Convertible Bon.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n RNS Number : 8204S Gem Diamonds Limited 26 May 2009 \n \n\nNews Release \n26th May 2009\n\nGEM DIAMONDS LIMITED\n('Gem Diamonds') or ('the Company')\n\nSETTLEMENT OF CONVERTIBLE BONDS\n\nGem Diamonds (LSE:GEMD) announces that it has purchased all of its outstanding Variable Rate Convertible Bonds (the 'Bonds') (which had an aggregate principal amount of US$16 million outstanding as at 22nd May 2009) for which Gem Diamonds paid US$ 15.76 million (being 98.5% of the aggregate principal amount outstanding) plus accrued interest of US$ 143,999.99. The immediate purchase of these Bonds, which were originally due to mature on the 2nd October 2009 will save the Company interest payments and 1.5% of the outstanding aggregate principal amount. In accordance with their terms and conditions, Gem Diamonds shall immediately procure that the Bonds are cancelled. \n\nThe purchase and cancellation of the Bonds is in line with the Company's strategy stated in the prospectus of 3rd April 2009 to use funds raised in the recent 'Placing' to repay the Company's outstanding debts. \n\nOther than for ongoing working capital requirements, Gem Diamonds now has no other outstanding debt obligations. In the Interim Management Statement released on the 19th May 2009, Gem Diamonds announced that it had gross cash of US$ 123 million (prior to the purchase of the Bonds). \n\n \nFor further information:\nGem Diamonds Limited\nRichard Chetwode, Investor Relations\nTel: +44 (0) 203 043 0280\nMob: +44 (0) 759 0064 883\nPelham PR\nCandice Sgroi\nTel: +44 (0) 207 3371533\nJames HendersonTel: +44 (0) 207 337 1501\nAbout Gem Diamonds:\n\nGem Diamonds Limited (LSE: GEMD) is a global diamond company that has been pursuing a long term growth strategy through targeted acquisitions and the development of existing assets. Under current market conditions, the Company is focused on the development of its cash generative assets and has curtailed all non-essential capital and developme...