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Forbes RCF loan maturity extended, takes funding restructure to shareholders

30th May 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – TSX- and JSE-listed Forbes & Manhattan Coal has extended the maturity date of its convertible loan from Resource Capital Funds (RCF) by two years.

The company said its $25-million RCF convertible loan facility, which was expected to close on June 30, 2014, would now mature on June 30, 2019.

The closing of the $15-million outstanding portion of the facility remained subject to disinterested shareholder approval, which the company would seek at a special meeting scheduled for June 27.

Forbes also planned to table the restructure of its debt facilities with Investec at the meeting.

As partial consideration for Investec entering into the restructured Investec facilities and subject to disinterested shareholder approval, Forbes would issue warrants to Investec to buy common shares in the company with an aggregate exercise price of R50-million.

The terms included restructured debt facilities of R170-million, comprising a five-year senior secured amortising term loan facility of up to R90-million, a five-year senior secured loan facility of R50-million – repayable by way of a bullet repayment at the end of the facility life – and a five-year senior secured working capital credit facility of R30-million.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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