Galaxy secures funding to repay debt
PERTH (miningweekly.com) – ASX-listed Galaxy Resources has secured a A$31-million debt facility from OCP Asia to repay the balance of its outstanding convertible bonds.
The OCP facility would have a three-year term and would be secured against Galaxy’s assets. The facility would carry a coupon of 10% a year.
In addition, OCP would receive a one-time facility fee equivalent to 8% of the loan along with ten-million warrants with an exercise price referenced to Galaxy’s share price in six months, which would be exercisable until the maturity date of the facility.
The 8% fee would be payable in Galaxy shares, priced at a historical 20-day volume weighted average price up to the date of the first drawdown.
“This debt refining is a major milestone and marks the final stage of the company’s balance sheet restructuring that has taken more than two years to complete,” said Galaxy MD Anthony Tse.
“Galaxy is now financially very well positioned, with a significantly strengthened balance sheet, as well as near-term cash flow expected from the restart of Mt Cattlin at the end of the first quarter in 2016.”
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