Peninsula Energy has negotiated a debt restructure with Resource Capital Fund, Pala Investments and Collins Street Value Fund.
Peninsula Energy (ASX:PEN) reported that it has reached agreement with Resource Capital Fund, Pala Investments and entities associated with investment fund Collins Street Value Fund, on the terms of a proposed restructure of the existing US$17 million convertible note facilities, including a planned significant reduction to the principal outstanding and an extension of the repayment date for the balance owing to April 22, 2021.
Highlights are as follows:
Agreement to repay majority of outstanding loans through a partial contract monetisation
If monetisation completes by 30 April 2020, extension of repayment date of residual debt to 22 April 2021
In the unlikely event that the monetisation does not complete by April 30, 2020, all outstanding loan amounts due and payable by October 31, 2020
Residual debt amended to straight term loans (convertible component removed) and annual interest rate reduced by 2 percentage points
Reduced financial undertakings on residual debt
Wayne Heili, managing director & CEO, commented:
Substantially reducing this debt and strengthening the balance sheet through a non-dilutive mechanism has been a key corporate focus of the company. We are very pleased to have reached agreement with our collective lenders (and shareholders), RCF VI, Pala and the Collins Street entities, to enable this debt reduction, and to extend the remaining loan repayment date until a time where markets have hopefully improved. On behalf of the board I’d like to extend our thanks to the aforementioned parties for their continued support of the company.