Falcon Energy Group presents restructuring terms to 2020 noteholders

By Caroline Salls

Pittsburgh, May 2 – Falcon Energy Group Ltd. presented a proposal to noteholders on a restructuring of the company’s series 001 notes due 2020 at an informal meeting held Thursday, according to a news release.

Under the proposed restructuring, 50% of the notes would be converted into shares at a conversion price of S$0.05.

The remaining notes would be exchanged for convertible notes with a step-up coupon. The step-up coupon payment would be 0.25% for years one through three, 0.5% for years four and five, 1% for year six and 1.25% for year seven.

Under a previous proposal made in April, the convertible notes would have carried a 0.25% coupon for their entire seven-year term, according to the presentation.

Convertible noteholders will have the option to convert their notes into shares every six months. The minimum conversion size will be S$25,000. The conversion price for the first three years of the notes’ term will be S$0.05. The conversion price will change to S$0.075 in subsequent years.

The unconverted portion of the notes will be redeemed at a 5% premium at the end of year seven.

Falcon is an investment holding company based in Singapore that provides services to oil companies and contractors worldwide.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.