Peninsula restructures debt
PERTH (miningweekly.com) – Uranium developer Peninsula Energy has negotiated the restructure of its existing $17-million convertible note facilities.
The ASX-listed company on Tuesday told shareholders that it had reached an agreement with Resource Capital Fund, Pala Investments and entities associated with Collins Street Value Funds on the terms of the proposed restructure, including a planned significant reduction to the principal outstanding and an extension of the repayment date of the balance owing to April 2021.
Peninsula told shareholders that the company would apply all proceeds from a proposed partial monetisation of an existing uranium concentrate sales and purchase agreement against the convertible note facilities.
The proceeds are expected to be some $10-million to $11-million, with the final amount to be determined by the spot price for uranium.
Peninsula was hoping to conclude the partial monetisation before the end of the 2019 calendar year. In the event that this does not happen by the end of April 2020, then all outstanding loan amounts will become payable by the end of October 2020.
Peninsula told shareholders that the restructure agreement with the lenders provided for an extension of the repayment date of the remaining outstanding facilities of between $6-million and $7-million, to April 2021, assuming that the partial monetisation transaction is completed.
“Substantially reducing this debt and strengthening the balance sheet through a nondilutive mechanism has been a key corporate focus of the company. We are very pleased to have reached agreement with our collective lenders to enable this debt reduction, and to extend the remaining loan repayment date until a time where markets have hopefully improved,” said Peninsula MD and CEO Wayne Heili.
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