Echo Energy PLC Successful Completion of Debt Restructuring & TVR (9625T)
March 30 2021 - 05:05AM
UK Regulatory
TIDMECHO
RNS Number : 9625T
Echo Energy PLC
30 March 2021
30 March 2021
Echo Energy plc
("Echo" or "the Company")
Successful Completion of Debt Restructuring
Total Voting Rights
Echo Energy, the Latin American focused upstream oil and gas
company, is delighted to announce that at the adjourned meeting of
the holders of the Company's Luxembourg listed EUR 20.0m 8.0%
secured notes (the "Notes") held earlier today (the "Noteholder
Meeting") to consider the Company's proposals for the restructuring
of the Notes (the "Proposals"), the Proposals were duly approved by
the requisite majority.
At the Noteholder Meeting voting instructions representing EUR
12.5m of the Notes were lodged by holders of the Notes
("Noteholders") with 84 per cent. of votes cast in favour of the
Proposals. As a result:
-- Maturity of the Notes will be extended by three years to 15
May 2025 (the "Maturity Date"); and
-- All cash interest payments on the Notes rolled to the Maturity Date.
Further details of the Proposals were set out in the Company's
announcement of 22 February 2021.
As a result of Noteholder approval of the Proposals, the
previously announced conditional restructuring of the Company's EUR
5.0m 8.0% secured convertible debt facility (the "Debt Facility"),
details of which were announced by the Company on 1 December 2020,
will now also become effective.
The restructuring of the Debt Facility will, inter alia, see its
final maturity extended to April 2025, with no further cash
interest payments required prior to final maturity.
Martin Hull, Echo's Chief Executive Officer, commented:
"I am delighted that Echo has now successfully completed the
restructuring of its debt obligations. The new arrangements result
in no cash payments to Noteholders until maturity in 2025. This
enables the Board to focus on rapidly delivering on its strategy to
improve shareholder returns.
Commodity price strength, including the very material increases
in gas price recently announced, combined with the more than
doubling of oil production following the ongoing infrastructure
upgrades, provide a markedly improved and positive outlook for
shareholders.
This is a landmark moment for Echo and I am confident that we
can now drive forward and reward shareholders in the future."
With the Proposals approved by Noteholders, the Company will
issue a total of 11,473,929 new ordinary shares in the Company
(representing c.0.9% of the Company's current issued ordinary share
capital) to Noteholders pro rata to their voting instructions cast
in favour of the Proposals at the Noteholder meeting (the "New
Ordinary Shares").
Application has been made for the 11,473,929 New Ordinary Shares
to be admitted to trading on AIM ("Admission") and it is expected
that Admission will occur at 8.00 a.m. on or around 1 April 2021.
Following Admission of the New Ordinary Shares, the Company's
issued ordinary share capital will comprise 1,219,367,987 Ordinary
Shares, none of which are held in treasury.
Therefore, following Admission of the New Ordinary Shares, the
total number of Ordinary Shares with voting rights in the Company
will be 1,219,367,987, which may be used by Shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
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END
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