Company sells three-year unsecured bonds to GEMS in three tranches
By Devika Patel
Knoxville, Tenn., Nov. 12 – Primeline Energy Holdings Inc. said it sold $8 million of three-year 7% unsecured convertible bonds to GEMS as part of a $20 million private placement. The deal priced on May 11 and raised $10 million on July 31.
The maturity date may be extendable for two one-year periods.
Of the bonds, $10 million will convert to common stock at a C$0.70 per share and the remaining $10 million will convert at C$0.85 per share. The conversion prices are 9.38% and 32.81% premiums to the May 8 closing share price of C$0.64. Primeline may force conversion.
Settlement of the final $2 million tranche is expected on Feb. 29, 2016.
GEMS will be entitled to nominate one voting member to Primeline's board of directors and will also receive a 3.76% structuring fee.
Proceeds will be used for an exploration program in Block 33/07.
Primeline is an oil and gas exploration and development company based in Hong Kong.
| Issuer: | Primeline Energy Holdings Inc.
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| Issue: | Unsecured convertible bonds
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| Amount: | $20 million
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| Maturity: | Three years, extendable for two one-year periods
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| Coupon: | 7%
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| Conversion price: | C$0.70 (for $10 million), C$0.85 (for $10 million)
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| Call: | Yes
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| Warrants: | No
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| Investor: | GEMS
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| Fees: | 3.76%
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| Pricing date: | May 11
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| Settlement date: | July 31 (for $10 million), Nov. 12 (for $8 million), Feb. 29, 2016 (for $2 million)
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| Stock symbol: | TSX Venture: PEH
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| Stock price: | C$0.64 at close May 8
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| Market capitalization: | C$24.12 million
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