Last checked at 
16 Oct 2015 17:15
16 October 2015
GLOBAL RESOURCES INVESTMENT TRUST PLC
("GRIT")
Update on 9% Convertible Loan Notes
By a loan note instrument by deed poll dated 27 February 2014 ("Loan Note Instrument"), the Company issued £5,000,000 nominal of 9 percent per annum convertible unsecured loan notes ("Loan Notes"). Under clause 6.5.7 of the Loan Note Instrument, GRIT gave an undertaking to ensure that the Coverage Ratio (being the ratio of the value of its investment portfolio to principal amount of the outstanding Loan Notes) is at all times no less than 4:1.
As a result of the NAV announced on 8 October 2015, the Coverage Ratio reduced to 3.8 and, accordingly, GRIT was in breach of this undertaking.
As stated in GRIT's announcement on 8 October 2015, GRIT had a ten day remedy period in which to restore the cover ratio to 4 times, failing which, the Loan Note holders would be able to require the immediate repayment of the Loan Notes.
Following the conversion of Loan Notes by Resources Development Partners Limited into 333,333 new Ordinary Shares announced today, the Coverage Ratio has increased to 4.04, and GRIT is no longer in breach of the Coverage Ratio undertaking in the Loan Note Instrument.
Enquiries to:
David ("Sam") Hutchins, RDP Fund Management LLP Investment Manager | Tel: +(0) 7290 8540 |
Martin Cassels R&H Fund Services Limited Company Secretary and Administrator | Tel: +(0) 131 524 6140 |
Roland Cornish Beaumont Cornish Limited Financial Adviser | Tel: +(0) 7628 3396 |