Pursuant to the maturity of $12.5 million in existing redeemable convertible bonds on June 4, Yongnam Holdings has announced that it has entered into a facilitation agreement as well as a bond subscription agreement with the existing bondholders.

Under the facilitation agreement, Yongnam will repay the bondholders $1.5 million, to be satisfied through the issuance of 19.7 million new ordinary shares in the company at an issue price of 7.6 cents per share. In addition, Yongnam will repay a further $3 million to the bondholders over ten equal monthly tranches from June 4, with an interest rate of 7% per annum paid in two tranches.

Under the bond subscription agreement, $9.5 million in new redeemable convertible bonds will be issued to the existing bondholders, to be set off against the existing bonds. The new unsecured one-year bonds will carry an interest rate of 7% per annum.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook