Sound Energy seeks consent to amend 5% note maturity, trim coupon

By Taylor Fox

New York, Oct. 28 – Sound Energy plc announced that, following discussions with some holders of its Luxembourg-listed €28.8 million 5% senior secured notes due 2021, it is seeking consent in respect of a restructuring of the notes, according to a news release.

A meeting will be held at 6 a.m. ET Nov. 12 to consider the proposal.

Sound Energy is seeking noteholder consent to amend the maturity date of the notes to June 21, 2025 from June 21, 2021 and to amend the interest rate of the notes to 2% per annum from 5% per annum for the period starting Sept. 21.

Sound Energy is also proposing to issue to the noteholders 245,457,596 warrants to subscribe for new ordinary shares in the company at an exercise price of 2.125p per ordinary share. The warrants will be exercisable from the date of issuance until the maturity date of the notes.

As of Sept. 30, Sound Energy had unaudited cash balances of £5.9 million.

Upon the noteholders’ approval of the proposal, and inclusive of restructuring costs related to implementation of the proposal, the board anticipates that the company’s cash resources remain sufficient to meet the its working capital requirements through to April 2021.

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

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