Mirland Development Corporation PLC Bonds Update (0901J)
April 01 2015 - 2:00AM
UK Regulatory
TIDMMLD
RNS Number : 0901J
Mirland Development Corporation PLC
01 April 2015
1 April 2015
MirLand Development Corporation plc
("MirLand" or the "Company")
Bonds update
Further to its announcement on 26 January 2015 and its Full Year
Results for the year ending 31 December 2014, announced on 18 March
2015, MirLand today announces the indicative non binding debt
restructuring terms (the "Restructuring") with the trustees of the
Series A-F bondholders (the "Trustees").
Any definitive agreement between the Company and the Trustees
requires approval by the board and shareholders of the Company and
will be subject to sanction by the Cypriot Court and bondholders
approval. The agreement as structured would also represent a
related party transaction under the AIM Rules for Companies.
The key terms of the proposed Restructuring are as follows:
-- Payments of principal are currently postponed for 3.5 years
and, once the Restructuring has been approved, the interest
payments due for all Series of Bonds in 2015, together with
interest payments of Series A and B Bonds deferred from 2014, will
be paid in full.
-- Interest payments for Series A-F bonds will be paid annually
on the same day up to and including 2017, and then they will be
paid semi-annually.
-- The interest on the Series A-F Bonds will increase by 1.25%
to the base interest of each bond series with this additional
interest being added to the principal and paid off with the
principal payments.
-- All future interest payments will be paid in full although
50% of the payments due in 2016 may be deferred conditionally on an
equity fundraising being undertaken by the Company.
-- The majority shareholders in MirLand will participate in a
pre-emptive equity issue of 15 million US Dollars of which half
will be subscribed for upon approval of the Restructuring by the
board, shareholders, bondholders and the Court and half in 2016
("Equity Fundraising").
-- The majority shareholders will undertake to subscribe for all
the shares issued in the Equity Fundraising subject to the extent
that other shareholders choose to participate.
-- All bond payments with regard to the bonds held by the
majority shareholders will be subordinated and paid one year after
the first principal payment.
-- Restrictions will be placed on the sale of bonds held by the majority shareholders.
-- Bondholders will be issued with 5% of the Company's issued
share capital together with options over a further 5% of the issued
share capital at an exercise price discounted to the prevailing
market price.
-- Options on similar terms will be granted to the majority
shareholders in the Company in an amount which will enable them to
hold up to 84% of the issued share capital of the Company.
-- The Company will be entitled to repay the bonds prior to the maturity date without penalty.
-- Restrictions on payments of dividends, related party
transactions and change of control of the Company will be placed on
the Company and the majority shareholders.
The Restructuring (if completed) will help the Company to
continue developing its projects, managing its assets and providing
financial support to its subsidiaries.
Further announcements will be made in due course.
MirLand Development Corporation +7 495 787 49
plc 62
Roman Rozental +7 499 130 31
roman@mirland-development.com 09
FTI Consulting
Dido Laurimore / Ellie Sweeney/Tom
Gough +44 20 3727 1000
Investec Bank plc
Jeremy Ellis / David Anderson +44 20 7597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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