Igas Energy PLC Sale of Secured Bonds and Covenants Update (2920O)
November 03 2016 - 10:45AM
UK Regulatory
TIDMIGAS
RNS Number : 2920O
Igas Energy PLC
03 November 2016
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION
3 November 2016
IGas Energy plc (AIM: IGAS)
("IGas" or the "Company")
Sale of Secured Bonds and Covenants Update
IGas announced in a statement, on 26(th) October, that it
expected a breach of its daily liquidity covenant in the week
commencing 31(st) October 2016. Today, IGas announces that,
following a sale of secured bonds with a total nominal value of
US$8.0 million at a price of 75% to par, realising cash proceeds of
US$6.0 million. As a result, the Company no longer expects a breach
of its daily liquidity covenant in 2016.
The Company now forecasts that it will be compliant with its
daily liquidity covenant until March 2017, when the next
amortisation and interest payment is due in respect of the secured
bonds, in addition to continuing to meet its ordinary course
financing and trading obligations. The cash proceeds realised from
the sale of the secured bonds are available for general corporate
purposes. The transaction, which exchanged and completed today, was
effected in the market through an intermediary.
As previously announced, the Company's current forecasts also
project non-compliance with its leverage covenants as at 31
December 2016. In the event of a breach of either leverage
covenant, an equity cure provision exists within the bond
agreements, such that a breach can be cured within 25 business days
of the delivery of the compliance certificate for that period. For
the period ending 31 December 2016, the compliance certificate must
be delivered by 30 April 2017, and accordingly the latest date for
any equity cure would be early June 2017.
The board continues its discussions with key stakeholders
concurrent with a number of strategic investors, as it continues to
assess options that would result in a capital structure for the
group that is sustainable in the current oil price environment and
enable the Company to capitalise on value accretive
opportunities.
Further updates will be made as and when appropriate.
For further information please contact:
IGas Energy plc
Tel: +44 (0)20 7993 9899
Stephen Bowler, Chief Executive Officer
Julian Tedder, Chief Financial Officer
Ann-marie Wilkinson, Director of Corporate Affairs
Investec Bank plc (NOMAD and Joint Corporate Broker)
Tel: +44 (0)20 7597 4000
Sara Hale/Jeremy Ellis/George Price
Canaccord Genuity (Joint Corporate Broker)
Tel: +44 (0)20 7523 8000
Henry Fitzgerald-O'Connor
Vigo Communications
Tel: +44 (0)20 7830 9700
Patrick d'Ancona/Chris McMahon
Disclaimers
This announcement is not intended to and does not constitute or
form part of any offer to sell or subscribe for or any invitation
to purchase or subscribe for any securities or the solicitation of
any vote or approval in any jurisdiction.
The release, publication or distribution of this announcement
in, into or from jurisdictions other than the United Kingdom may be
restricted by law or regulation and therefore any persons who are
subject to the laws or regulations of any jurisdiction other than
the United Kingdom should inform themselves about, and observe, any
applicable requirements.
There are matters set out within this announcement that are
forward-looking statements. Such statements are only predictions,
and actual events or results may differ materially. For a
discussion of important factors which could cause actual results to
differ from forward-looking statements, refer to the Company's
Annual Report and Accounts for the nine months to 31 December 2015.
The Company does not undertake any obligation to update publicly,
or revise, forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent
legally required.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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