Restructure of Atlas Equity Linked Convertible Bond to an Extended Fixed Term Loan

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Vast Resources plc, the AIM-listed mining company, is pleased to announce it has executed a legally binding Heads of Terms (‘HOT’) with Atlas Special Opportunities LCC ‘Atlas’ which will form the basis of a deed of variation to the Atlas Bond Issuance Deed dated 23 October 2019 (‘Atlas Deed of Variation’) which would restructure the Tranche 1 Bonds issued to Atlas announced on 31 January 2020 (the ‘Bonds’) into a non-equity linked loan.

The purpose of the legally binding HOT is to restructure the existing equity linked convertible Bonds repayable on 29 January 2022 into a traditional senior secured loan with a fixed price premium with repayment postponed to 30 June 2022. The par value of the Bonds currently outstanding is $6.5 million.

The terms of the HOT will take effect only upon agreed documentation being executed with Mercuria (the ‘Effective Date’) under the terms of the tripartite Intercreditor Agreement (‘ICA’) as announced on 31 January 2020. The HOT provides that the repayment of the Bonds becomes subordinated to the interests of Mercuria and has a fixed repayment date of 30 June 2022. The HOT provides that $1 million of the Bonds be repaid within 30 days from the Effective Date and that a premium be added to the par value of the Bonds remaining.

The HOT also provides for the issue of new warrants to Atlas of such number as would be required at a purchase price of 16p per Ordinary Share to purchase $2 million of Ordinary Shares in the Company at an exercise price of 16p per share exercisable at any time within three years of the effective date.

Andrew Prelea, Chief Executive Officer of Vast Resources Plc, commented:

“The restructuring of the Atlas Convertible Bond to an Extended Fixed Term Loan addresses the concerns of shareholders on a number of levels. First and foremost, it eliminates the risk of conversion at the current share price levels. Furthermore, we believe the restructuring also highlights Atlas’s confidence in the Company’s ability to perform as a producing mining company with a positive outlook regarding the settlement of the outstanding loan and premium within the extended period.”

Market Abuse Regulation (MAR) Disclosure

Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 (“UKMAR”) until the release of this announcement.

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