Blumont gets US$200m funding from US hedge fund

STERILISATION and mining company Blumont Group has secured US$200 million of funding from Platinum Partners Value Arbitrage Fund LP, a New York-based global investment fund.

Under a binding term sheet entered into yesterday, Blumont will issue redeemable convertible bonds to Platinum Partners, in four equal tranches of US$50 million - each at a coupon rate of 8 per cent per annum, payable on a semi-annual basis.

The hedge fund may elect to receive payment of interest by way of the issue and allotment of new ordinary shares in Blumont, at an issue price of 40 cents per interest share.