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10:57
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Originally posted by schmunzel75
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A bit more detail around this new debt facility would be nice. But since it will be used to repay the existing OCP Asia facilities in full, we can expect that AT negotiated superior conditions with the BNP Paribas loan facility.OCP to provide a A$31 million secured debt facility to the Company, for the principal purpose of repaying the balance of outstanding convertible bonds. OCP facility is for 3 years , secured against the assets and undertakings of the Company and will carry a coupon of 10% per annum. In addition, OCP will receive a one-time facility fee equivalent to 8% of the loan and 10 million warrants with an exercise price referenced to the share price in 6 months (subject to a floor of 8 cents), which shall be exercisable until the maturity date of the facility. The 8% fee is payable in Galaxy ordinary shares priced at a historical 20-day VWAP up to the date of first drawdown. The term sheet provides that upon full repayment of the facility, the Company will provide to OCP an agreed hurdle rate of return which is inclusive of the interest paid, as well as any gain in value of the Galaxy shares issued in satisfaction of the facility fee. Other terms include those customary to this type of financing.
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Exactly why he has renegotiated. This is pure spec, but aside from the obvious benefit of the immediate credit, I think there may have been ulterior motive from AT. The teir one thing really jigs me. I think he's lining them up to supply funding for sdv.
