Sound Energy publishes bond restructuring proposals

Chicago, March 30 – Sound Energy plc published a consent solicitation memorandum on Tuesday with proposals for the restructuring of its €28.8 million 5% senior secured notes due 2021, according to a press release.

The company seeks to move the maturity date to Dec. 21, 2027 from June 21.

The notes would be amortized at a rate of 5% every six months starting Dec. 21, 2023.

A €3,479,999 portion of the notes would be converted into 141,176,448 new ordinary shares in the company at 2.125 pence per new share. Half of the conversion shares would be subject to a three-month lock-in period and half subject to a six-month lock-in period.

Starting June 21, the interest rate would be an annual rate of 2% in cash and 3% deferred interest to be paid at maturity, instead of the current 5% interest.

Additionally, the company would be able to redeem the notes in full at any time until Dec. 21, 2024 at 70% of the principal value outstanding plus cash interest and all of the deferred interest.

As part of the proposal, the company is proposing to issue to noteholders 99,999,936 warrants to subscribe for new ordinary shares in the company at an exercise price of 2.75 pence per share.

The warrants would be exercisable until Dec. 21, 2027.

The company attempted a restructuring in December but was unable to get the necessary consents at that time.

A noteholder meeting will be held on April 14 to consider the proposal.

Sound Energy is an oil and gas exploration and production company based in Sevenoaks, England.

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