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Linc Energy in talks with US subsidiary's note holders
OIL and gas company Linc Energy is in talks with its US subsidiary's note holders on the terms of the arrangements following the fall in oil prices.
"These discussions are ongoing and incomplete. The company and its subsidiaries remain in compliance with all its obligations under the terms of all of its credit facilities," Linc said. It was replying to Singapore Exchange's query over its trading activities on Wednesday.
On May 6, Linc shares opened at S$0.32 and eased to S$0.265 before closing at S$0.275. More than 8.33 million shares were traded.
At 10.50am on Thursday, Linc shares continued to head south, trading at S$0.245, down three cents or almost 11 per cent lower. More than 2.4 million shares changed hands.
On Monday, Linc disclosed that it had issued and allotted 8.45 million shares on conversion of US$5 million of the US$200 million 7 per cent convertible notes due 2018 at S$0.77 per share. It has previously redeemed an aggregate principal amount of US$50 million of the notes. Notes outstanding after this conversion allotment have a face value of US$145 million. The conversion price for the notes is S$0.77 and the coupon 9 per cent.
Last month, Linc announced that it has slashed hundreds of jobs as lower oil prices forced it to cut costs. It said it had axed more than 200 employees, or a third of its workforce, over the past six months, reducing the headcount to 350 from 564. It did not provide details of affected contractor positions.