SVH to raise $13.1 million, re-negotiates bond repayment terms

After a trading suspension earlier this week, Silver Heritage Group says it has successfully re-negotiated the terms of its bond refinancing with OCP Asia, and has also announced an Equity Raising scheme to raise approximately $13.1 million.

On Monday, Silver Heritage announced a trading halt on the ASX, pending an undisclosed announcement at the time.

On Wednesday, the group subsequently announced a suspension of its securities from official quotation, under Listing Rule 17.2 on the ASX, pending an announcement in regards to capital raising and amendments to the terms of bonds.

On Thursday, SVH said it has re-negotiated the terms of its bonds with OCP.

Under the new arrangement, Silver Heritage says it has been provided with an “immediate reduction in Bonds outstanding from US$18 million to $11.2 million”, and has agreed to repay up to $6.8 million with proceeds from its Equity Raising Scheme.

Other changes include having the bonds have their maturity date extended by an additional 19 months to April 2, 2021, and their scheduled repayments extended out also.

In return for the favorable terms, Silver Heritage has agreed to pay OCP a work fee of A$360,000, and issue OCP 20 million fully paid ordinary shares in the company to OCP for no additional cash consideration.

SVH said the revised terms and Equity Raising will significantly reduce the company’s gearing levels and improve the company’s financial position.

The company also noted that proceeds from the Equity Raising will be used to make repayments on the OCP Bonds, pay Bond Refinancing and Equity Raising costs and for general working capital purposes.