RE: Cash in bank by 20229 Feb 2020 16:07
These are convertible bonds so if HUR chooses it does not have to redeem the bonds in cash, it can instead issue as many shares as it needs to on the redemption date (July 22) to pay the bond holders in HUR shares based on the bonds face value of $.52. Here are the relevant RNS details:
30 June 2017 Results of Convertible Bond Offering. Hurricane Energy plc, the UK-based oil and gas company focused on hydrocarbon resources in naturally fractured basement reservoirs, today announces the successful placement of US$220 million of Convertible Bonds due 2022 (the "Bonds" and "Offering").
Concurrently with the Offering, the Company raised US$300 million by way of a non-pre-emptive placing (subject to shareholder approval) of new ordinary shares in the capital of the Company (the "Concurrent Equity Placement").
The net proceeds of the Offering and the Concurrent Equity Placement will be used to fund capital expenditure in relation to the Early Production System development at the Company's Lancaster field, West of Shetland. The Company is currently targeting achieving first oil in the first half of 2019, and completing this financing now will enable the Company to maintain this target.
The Bonds will be issued at par and carry a coupon of 7.50 per cent per annum payable quarterly in arrear in equal instalments. The Bonds will be convertible into fully paid ordinary shares of the Company (the "Ordinary Shares") with the initial conversion price set at US$0.5200, representing a 25 per cent. premium above the placing price of the Concurrent Equity Placement, being £0.32 (converted into U.S. dollars at a GBP/USD 1.30 rate). Upon conversion of the Bonds, the Company may elect to settle its obligations by way of delivery of ordinary shares, payment of a cash alternative amount (calculated by reference to the volume weighted average price of an Ordinary Share over of a specified period) or a combination of the two.
Unless previously converted, redeemed, or purchased and cancelled, the Bonds will be redeemed at par on 24 July2022. The Company will have the option to redeem all, but not some only, of the outstanding Bonds at any time on or after 14 August 2020 at par plus accrued interest if the value of the Ordinary Shares underlying a Bond (calculated over a specified period) shall have been at least US$300,000; and· at any time, if 85 per cent. or more of the aggregate Principal Amount of the Bonds originally issued shall have been previously converted, redeemed, or purchased and cancelled (the "Clean-up Call").
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