LONDON (Alliance News) - Sound Energy PLC on Tuesday said Greenberry SA has subscribed for EUR28.8 million bonds, adding that it it will also issue 70.3 million warrants for new shares at a price of 30.00 pence per share to Greenberry.
Shares in Sound Energy were up 0.1% at 17.04p on Tuesday morning.
The gas company last month said it signed heads of terms with Greenberry for it and other investors to subscribe for bonds and, on Tuesday, said Greenberry has subscribed for the 5 year non-amortising bonds with a total par value of EUR28.8 million. The bonds are to be issued in tranches, with the first EUR10.0 million tranche issued on Tuesday.
The bonds have a 5.0% coupon and are being issued at a 32% discount to par value, Sound Energy said. A total cash fee of EUR1.1 million is payable by Sound Energy to Greenberry in connection with the issue of bonds.
Alongside the bonds, Sound Energy said it will issue 70.3 million warrants to subscribe for new shares at a price of 30.00p per share and an exercise period of around five years to Greenberry. The issue of 3.4 million of the warrants will remain subject to approval from Sound Energy's shareholders at its annual general meeting on June 29.
Sound Energy said the proceeds from the bond issue will be used to settle its EUR7.0 million Nervesa reserve-based lending facility provided by Greenberry, which is due to mature in November, as well as its GBP7.0 million corporate loan from Greenberry, due to mature in July, 2017. Its GBP1.0 million loan provided by its Chairman Simon Davies will remain in place, it said.
Sound Energy said EUR6.0 million will be used "to pursue its growth strategy".
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Sound Energy (SOU)