Echo Energy PLC Publication of Bond Restructuring Proposals (8130P)
February 22 2021 - 2:00AM
UK Regulatory
TIDMECHO
RNS Number : 8130P
Echo Energy PLC
22 February 2021
Certain of the information contained within this announcement is
deemed by the Company to constitute inside information as
stipulated under The Market Abuse Regulation (EU 596/2014) pursuant
to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon
the publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
22 February 2021
Echo Energy plc
("Echo" or the "Company")
Publication of Bond Restructuring Proposals
Echo Energy, the Latin American focused upstream oil and gas
company, is pleased to announce, further to the Company's
announcement of 1 December 2020, that following positive and
constructive discussions with certain holders of the Company's
Luxembourg listed EUR 20.0m 8.0% secured notes (the "Notes") it has
published its proposals (the "Proposals") in respect of a
restructuring of the Notes and that a meeting of the holders of the
Notes (the "Noteholders") has now been convened to consider the
Proposals for 10.00 a.m. (London Time) on 15 March 2021 (the
"Noteholder Meeting").
Pursuant to the Proposals, the Company is seeking Noteholder
consent to:
-- Extend the maturity of the Notes by three years to 15 May 2025 (the "Maturity Date"); and
-- Remove all cash interest payments on the Notes prior to the Maturity Date.
If approved by the requisite majority of Noteholders any and all
interest on the Notes accruing from 31 December 2019 shall be paid
in cash on the Maturity Date save that Noteholders will be provided
with the ability, from 30 September 2021, to elect to receive Note
interest payments in respect of the immediately preceding quarter
in new ordinary Shares in the Company ("Elections"), subject inter
alia to the Company having the required share issuance authorities
in place from time to time to satisfy Elections and to Noteholders
holding at least 50 per cent. of the Notes having made Elections in
respect of the relevant quarter. Any new ordinary shares issued as
a result of Elections will be issued at an effective issue price
equal to the volume weighted average price of an Echo ordinary
share for the 10 Business Days before the relevant interest
conversion date.
In putting the Proposals to Noteholders the Company has agreed,
subject to Noteholder approval of the Proposals at the Noteholder
Meeting that it will not, without the prior consent of Noteholders
by way of a simple majority of those Noteholders then voting, drill
an exploration well with a budgeted cost to the Company of in
excess of EUR 5.0 million for so long as the Notes are outstanding
and that it will not, in the last 18 months prior to the Maturity
Date, make an acquisition of an interest in an oil and gas
property, lease or licence if the cash consideration for such
acquisition exceeds EUR 10.0 million.
Subject to the passing of the Proposals at the Noteholder
Meeting, the Company will make a payment to Noteholders of an
aggregate of EUR 100,000, payable to Noteholders voting in favour
of the Proposals at the Noteholder Meeting pro rata to votes cast
at the Noteholder Meeting, to be satisfied by the issue of new
ordinary shares in the Company at an issue price equal to the
average mid-market closing price per Echo ordinary share for the
five days ending, and including, 18 February 2021.
A copy of the circular today sent to Noteholders will shortly be
available on the Company's website at www.echoenergyplc.com/
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
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