Eight Capital Partners PLC (AQSE:ECP) has told investors it is seeking an equity conversion deal with certain debtholders.
The company, in a statement, said it had sent out a memorandum to holders of its 4.8% bonds – a €10 million series due to mature on 3 September 2026 – and at the same time has called a general meeting for shareholders to vote in order to approve the proposed conversion.
Making the case for conversion, the company said: “Firstly, this would give [bondholders] exposure to the growth potential of the business as its strategy develops on the back of the recent strengthening of the company's balance sheet.
“Secondly, bond market conditions have changed such that the fixed interest coupon paid by the notes is less aligned with current market expectations.
“The directors, therefore, believe that this is an opportune moment for noteholders to be given the opportunity to convert their notes into the company's shares.”
If it proceeds, the debt conversion is predicted to see 18.4 billion new shares issued which would represent around 10.2% of the company’s enlarged share capital.
The conversion would be at a price connected to the prevailing volume weighted average price (VWAP) for the ten days prior to conversion.