Business
Successful Arrangement of US$15m Convertible Bond
Successful Arrangement of US$15m Convertible Bond.
About this update from Iofina Plc
[{"type":"text","content":"\n \nRNS Number : 1828E Iofina PLC 08 May 2013 \n \n\n \n \n8 May 2013\n \n \nIofina plc\n(\"Iofina\" or the \"Company\")\n(LSE AIM: IOF)\n \nSuccessful Arrangement of US$15m Convertible Bond \nIofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce that it has today agreed to issue to Stena Investments Sarl. (\"Stena\"), a two year US$15 million convertible bond (the \"Bond\"). The Company intends to use the net proceeds from the issue of the Bond primarily for the accelerated role out of its IOsorb™ plants to increase the rate of production growth and to provide additional working capital to finance trade receivables. \nThe Bond will be issued at par by the Company and have an annual coupon of 6.5% payable quarterly in arrears and will be convertible into fully paid ordinary shares of the Company (\"Ordinary Shares\"). The conversion price was set at a price of US$3.21 (GBP 2.06 converted into US dollars at the GBP:USD exchange rate as of 3 May 2013) (the \"Conversion Price\") representing a 10 per cent. premium to the closing price of GBP 1.8725 on 3 May 2013.\nBased on the issue size of US$15 million, the Ordinary Shares to be issued upon conversion of the Bond would represent approximately 4,672,897 Ordinary Shares or 3.67% of the current issued share capital of the Company. \nThe closing date is expected to be on or before 17 May 2013 (the \"Closing Date\") and is subject to the finalisation of documentation for the Bond. If not converted or previously redeemed the Bond will be redeemed at par upon their maturity 2 years from the Closing Date. The Company has the right to redeem the Bonds without penalty at any time at which point Stena may elect to convert or receive repayment. The Bond can also be converted or redeemed by Stena in the event that the Company is taken over. \nRelated Party Transaction\nAs Stena is a Substantial Shareholder in the Company, pursuant to AIM Rule 13, the issue of the Convertible Bond is a Related Party Transaction. The Company's board of directors (excluding Chris Fay, who is a non-executive director of Stena International Sarl, an advisory board of the Stena Group of companies (the \"Independent Board\")) considers, having consulted with Iofina's Nom...