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Regency Mines shifts main burden of debt repayments into 2020 with convertible issue, loan note re-profiling

The AIM-listed firm said it has raised £676,000 through the issue of £676,000 of convertible notes, with accompanying warrants to institutional and high net worth investors
Loan
It also unveiled the partial repayment and restructuring of a US$1.6mln loan note, announced on 6 June 2018

Regency Mines PLC (LON:RGM) has shifted the main burden of its debt repayments into 2020 through an issue of convertible notes and a partial repayment and re-profiling of a loan note.

The AIM-listed firm said it has raised £676,000 via the issue of £676,000 of convertible notes with accompanying warrants to institutional and high net worth investors.

Watch: Regency Mines pushes back bulk of debt repayments to give 'clearer runway through 2019'

The natural resource development company, with interests in hydrocarbons and battery metals, said the notes are convertible into ordinary shares at a price of 0.42p each.

It added that conversion may take place at any time up to the final redemption date of 30 May 2020, and the interest rate on the notes is 12.5% per annum, accruing monthly.

The company said each note subscribed for also includes 119,047 warrants entitling the holder to subscribe for one share at any time up to 31 May 2021 at a price of 0.6p per share.

READ: Regency Mines expects further progress at ventures in 2019

Regency Mines shares were changing hands at 0.3p each in late morning trading on Monday.

The group also unveiled the partial repayment and restructuring of a US$1.6mln loan note, announced on 6 June 2018, taken out from institutional investors Riverfort Global Opportunities PCC Limited and YA II PN Ltd.

Short term uncertainty reduced

Andrew Bell, Regency Mines’ chairman, commented: "By issuing the May 2020 Notes and retiring a significant portion of Loan Note outstandings, while reprofiling the balance, Regency has shifted the main burden of any repayments into 2020.”

He said: “This clearer runway through 2019 and into next year gives us more time to unlock and build value, and reduces short-term uncertainty.”

Bell added: “Our primary focus is on growing cash flows from our coal operations through 2019 and generating cash remittances back into the parent company. In other parts of our business we see opportunities for profit also demanding our attention. For us to be in a position to do justice to these opportunities, this first step was a prerequisite."

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