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KS Energy gets extra time for new bond, warrant issuances
KS Energy said after Wednesday trading close, it has reached an agreement with the lenders for the proposed issue of S$80.15 million fixed rate bonds and 80.15 million non-listed bonus warrants, to postpone the closing date of the transactions.
The revised closing date is Dec 21, 2017, three months later than the last agreed closing date of Sept 21, 2017 as announced on Aug 1, 2017.
The lenders involved are OCBC Bank, TAEL One Partners Ltd, Pacific One Energy Limited (POEL) and Hedy Wiluan.
Ms Wiluan is the sister of KS Energy's executive chairman CEO and controlling shareholder, Kris Wiluan.
In connection with the revised closing date, OCBC and KS Energy have on Oct 4 agreed that the contingent deferred amount under the terms of a back-end payment, shall be equivalent to the accrued coupon payments and redemption premium owing to OCBC under the existing convertible bonds up to the revised closing date.
KS Energy and OCBC have previously entered into an agreement on Aug 1, 2017 pertaining to the back-end payment. The Aug 1 agreement called on KS Energy to use excess cash from the proceeds of the sale of KS Energy's equity interest in KS Distribution Pte Ltd to pay to OCBC up to the contingent deferred amount as a back-end payment.
OCBC, POEL and Ms Wiluan are existing holders of S$45.0 million worth of convertible bonds due 2017 with a 6 per cent coupon rate at a redemption price of 121.75 per cent of the principal amount. TAEL is an existing holder of S$7.5 million worth of convertible bonds due last year with a 6 per cent coupon rate at a redemption price of 104.19 per cent of the principal amount.