Business
Heads of Terms in respect of Bond Programme
Heads of Terms in respect of Bond Programme.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 7105X Sound Energy PLC 10 May 2016 \n\n10 May 2016\n \nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nHeads of Terms in respect of Bond Programme and Refinancing \n \nSound Energy, the European / Mediterranean focused upstream gas company, is pleased to announce the signature of Heads of Terms (\"Heads\") with Greenberry PLC (\"Greenberry\") for Greenberry and other investors (together the \"Bond Subscribers\") to subscribe for bonds to be issued by the Company to provide additional funding for the Company's growth strategy whilst also simplifying the Company's corporate debt structure. \n \nThe bonds will involve the Bond Subscribers acquiring, subject to contract, privately placed 5 year non-amortising bonds with an aggregate par value of at least Euro 28.8 million and a 5% coupon (the \"Bonds\"). The Bonds will be issued at a 32% discount to par, will attract a total cash fee of Euro 1.1 Million (3.8% of par value) and will be secured upon the shares of the Company's subsidiary that holds its Italian assets, Sound Energy Holdings Italy Limited. Alongside the Bonds, and as part of the debt package, the Company also intends to issue Greenberry with an aggregate total of 70,312,500 warrants to subscribe for new ordinary shares in the Company, issued pro rata alongside the Bonds, at an exercise price of 30 pence per ordinary share and with an exercise period of approximately 5 years from the date of issue, concurrent with the term of the Bonds. The issue of 3,335,214 of the warrants will require shareholder approval.\n \nOn completion of the Bond programme, the net proceeds will be utilised to:\n \n· provide the Company with additional cash resources of Euro 6 million with which to pursue its growth strategy, \n· repay in full (at a 50% discount to par) the Euro 7 million Nervesa reserve based lending facility falling due for maturity in November 2016, and\n· repay in full (at par) the existing £7 million corporate loan from Greenberry falling due for maturity in July 2017.\n \nThe £1 million loan originally provided to Sound Energy in January 2014 by Simon Davies, the Company's Chairman, will remain in place until its expiry in July 2017. The issue of the Bonds wil...