Business
Issue of Bonds and Warrants
Issue of Bonds and Warrants.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 8278B Sound Energy PLC 21 June 2016 \n\n21 June 2016\n \nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nIssue of Bonds and Warrants \n \nSound Energy, the European / Mediterranean focused upstream gas company, announces that, pursuant to a subscription agreement dated 21 June 2016 (the \"Subscription Agreement\"), Greenberry S.A. (\"Greenberry\") has subscribed for 5 year non-amortising secured bonds with an aggregate par value of Euro 28.8 million (the \"Bonds\"). The terms of the Bonds were previously announced by Sound Energy on 10 May 2016.\n \nAlongside the Bonds, the Company will issue 70,312,500 warrants to subscribe for new ordinary shares in the Company at an exercise price of 30 pence per ordinary share and an exercise period of approximately five years, concurrent with the term of the Bonds, to Greenberry (the \"Warrants\"). The issue of 3,335,214 Warrants will remain subject to Sound Energy shareholder approval at the Company's 2016 annual general meeting. \n \nThe net proceeds of the Bond Issue will be utilised to: (i) provide the Company with additional cash resources of Euro 6 million with which to pursue its growth strategy; (ii) settle in full, including termination of the associated royalty agreement, (at a 50% discount to par value) the Euro 7 million Nervesa reserve based lending facility provided by Greenberry falling due for maturity in November 2016 (the \"RBL Settlement\"); and (iii) settle in full (at par value) the existing £7 million corporate loan from Greenberry falling due for maturity in July 2017 (the \"Greenberry Loan Settlement\" and together with the RBL Settlement the \"Debt Settlement\"). The £1 million loan originally provided to Sound Energy in January 2014 (the \"Director Loan\") by Simon Davies, the Company's Chairman, will remain in place until its expiry in July 2017. \n \nCertain of the assets of Sound Energy Holdings Italy Limited (the Sound Energy subsidiary that that holds the group's Italian assets), on which the Bonds are secured, were previously provided as security under the Director Loan. Following the transfer of the Director Loan from Mr. Davies to his wife, Mrs. Davies has agreed to release the previous Director Loan security and the Director Loan is now, pursuant to the terms of a share charg...