Green Dragon Gas Ltd Debt Maturity Extensions (9529U)
30 October 2017 - 8:28PM
UK Regulatory
TIDMGDG
RNS Number : 9529U
Green Dragon Gas Ltd
30 October 2017
30 October 2017
GREEN DRAGON GAS LTD.
('Green Dragon', 'GDG' or the 'Company')
Debt Maturity Extensions
Green Dragon Gas Ltd. (LSE: GDG), one of the largest independent
companies involved in the production and sale of coal bed methane
(CBM) gas in China, is very pleased to announce that it has
progressed discussions with the majority of its debt holders to
extend existing maturities to 20(th) November 2018 (the
"Amendments"). The discussed extensions are subject to the
Amendments being executed and there being an inter-creditor
agreement between the debt holders, which is expected to be
finalised on or before 15(th) November 2017.
Nordic Bond - US$88 million
Bond maturity of 20(th) November 2017 will be extended to 20(th)
November 2018, following execution of the Amendment. The Amendment
will include the following material economic terms:
-- The interest rate shall be 10% until 30(th) June 2018 and 12% thereafter until maturity
-- All interest will be accrued through 30(th) June 2018 and paid in cash thereafter
-- The bond redemption increased to 107.5 per cent, if not
redeemed by 30(th) June 2018 at 102 as per current Bond
Convertible Bond - US$50 million
The put option was not exercised on 27(th) October 2017 but
extended, so as to allow for the conclusion of an inter-creditor
agreement which is to provide it with the same security as to the
Nordic Bond Trustee but subordinated, on or before by 15(th)
November, 2017.
These two extensions are expected to be effective concurrent
with the inter-creditor agreement being executed. Once effective,
GDG will have no debt obligation maturities through to 20(th)
November 2018 and therefore can focus on its expanding
operations.
Randeep S. Grewal, Founder & Chairman commented: "We are
very appreciative of the continued support from our debt holders at
this current time in the evolution of the business and after an
extensive due diligence process carried out by them on the
Company's current activities and future potential.
"These discussions endorse the quality of our asset-base,
operational milestones achieved to-date, as well as the Company's
position to accelerate production across our vast acreage.
Following these Amendments, the management team will be focused
on operations and the Hong Kong IPO. We shall be providing a more
comprehensive execution plan on the IPO at the AGM to be held in
early December."
For further information on the Company and its activities,
please refer to the website at www.greendragongas.com or
contact:
FTI Consulting
Edward Westropp / Kim Camilleri / Elizabeth Burnham / Ntobeko
Chidavaenzi
Tel: +44 20 3727 1000
About Green Dragon Gas
Green Dragon Gas is a leading independent gas producer with
operations in China and is listed on the main market of the London
Stock Exchange (LSE: GDG). The Company has 559 Bcf of 2P reserves
and 2,386 Bcf of 3P reserves across eight production blocks
covering over 7,566 km(2) of license area in the Shanxi, Jiangxi,
Anhui and Guizhou provinces. It holds six Production Sharing
Agreements with strong, highly capitalised Chinese partners
including CUCBM (CNOOC), CNPC and PetroChina, and has
infrastructure in place to support multiple routes to monetise gas
production.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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