AusGroup to convert some S$5.3m of outstanding debt into new shares
HOLDERS of AusGroup notes with a total principal amount of some S$5.3 million have taken up the oilfield services firm's offer to exchange debt for new shares in the company.
This represents 6.79 per cent of AusGroup's outstanding notes, the company said on Friday. Based on this, the exchange consideration - which includes accrued and unpaid interest - works out to some S$5.31 million.
As a result of the exchange, the company's interest payments will be reduced by about S$500,000 per annum, it said.
AusGroup had made the exchange offer earlier this month, inviting holders of its S$110 million 7.95 per cent notes coming due in 2018 to swop them for new shares. The offer period closed at 5pm on Thursday.
The company is now proposing to issue some 91.6 million new shares to the noteholders who have validly participated in the offer, which will represent 6.48 per cent of AusGroup's issued share capital as at Friday, and 6.08 per cent of its enlarged share capital post-settlement.
The issue of these shares is within the company's general share issue mandate, and the settlement of the exchange offer will take place on Friday.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
US: Stocks end flat ahead of key inflation data
TikTok suspends new app’s reward programme amid EU concerns
Hong Kong spot crypto ETFs to start trading next week
Cordlife substantial shareholder Nanjing Xinjiekou still mulling over offer to buy over remaining shares
Nvidia agrees to acquire Israeli AI software provider Run:ai
HSBC says growing Chinese wealth fuels client investments in US