Published Monday 9th, November 2009.
Article Category: Announcements
SummaryLoan agreement, issue of new equity and total voting rights
The Board of Andes (AIM: AEN), the Latin American energy group, is pleased to announce that it has agreed new terms for its existing debt facility with Genipabu Investments LLC (“Genibapu”), a Delaware company.
Under the new terms the US$7.19 million convertible loan agreement (the “Loan”) carries an unchanged coupon of 12 per cent. per annum with the principal repayable by May 2013.
Interest now due for the period to 26 October 2009 will be satisfied in lieu of cash by the issue of 3,369,147 new ordinary shares of Andes of 10p each (“Ordinary Shares”) at a price of 28p per share which represents, approximately, a 15 per cent. premium to the average share price of the last 180 days.
Interest due for the period from 26 October 2009 to 14 February 2010 will be satisfied in lieu of cash by the issue of 580,706 Ordinary Shares on 15 <br />February 2010 at a price of 28p per share.
The Loan and any accrued interest is also convertible, at any time, in whole or in part, until its maturity at the lender’s option, into Ordinary Shares at a price equal to the average share price for the previous 90 days.
Application will be made for the 3,369,147 Ordinary Shares, to be allotted to Genipabu in satisfaction of interest due for the period to 26 October 2009, to be admitted to AIM. It is expected that admission of the new Ordinary Shares will become effective on 16 November 2009.
After admission of the new Ordinary Shares, Genipabu will own approximately 2.9 per cent. of the Company’s issued share capital.
Total Voting Rights
Following admission of the 3,369,147 Ordinary Shares, the total number ofissued ordinary shares in the Company will be 120,463,745 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority’s Disclosure and Transparency Rules.
Nigel Duxbury, Chief Financial Officer of Andes, said:
“We have now managed to refinance all our principal corporate financial debt despite tough market conditions. The deferred maturity dates at interest rates below the market average will enable us to focus our cash resources on our key strategic objectives that we believe will continue to add value for our shareholders.”