Linc Energy: Counter is up 9.3% today, recovering slightly from its 29% slump in share price yesterday.
In a query by SGX on its trading activity, the group highlighted that it is currently in discussion with its US subsidiary’s note holders regarding the terms of its cash call, in light of the recent collapse in oil prices. These discussions are on-going and incomplete.
To recap, Linc Energy recently allotted an aggregate of 8.5m shares in the company on conversion of US$5m of the US$200m convertible notes due 2018 at $0.77 per share.
Linc Energy had previously redeemed an aggregate principal amount of US$50m of the notes. Notes outstanding after this conversion allotment have a face value of US$145m. The conversion price for the notes is currently at $0.77 with a coupon rate of 9%.
The latest move comes as the group continues to grapple with low energy prices and as it attempts to reduce capital expenditure and divest non-core assets.
Linc Energy currently trades at 0.27x P/B.
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