LONDON (Alliance News) - MirLand Development Corp PLC on Wednesday said it has agreed the terms for its bond restructuring plan with the series A-F bondholders.
Under the restructuring plan, debt owed to the bondholders will be converted into approximately 81% of MirLand's share capital, with the possibility of dilution by the issue of management options, and the issue of a new bond series with a principal amount of USD45 million.
Controlling shareholders Jerusalem Economy Ltd, Industrial Buildings Corp Ltd and Darban Investments Ltd will subscribe for up to USD14.1 million of new equity. The subscription is subject to clawback in respect of valid applications received from other shareholders in respect of an open offer expected to be made by MirLand.
Upon completion of the restructuring, if management options are exercised, MirLand will issue 9% of the issued share capital on a fully diluted basis subject to certain vesting criteria, at an exercise price reflecting the current valuation of the company.
Under the terms of the new series, the principal will be repaid through three equal payments on December 31 of 2012, 2022 and 2023, and will bear an annual fixed interest rate of 1%.
MirLand has the right to repay the new series amount at any time.
Shares in MirLand were untraded on Wednesday, last quoted at 17.25 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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