Dec 2, 2013 - Ireland-based Kedco plc (LON:KED) said Friday it had issued a EUR-2-million (USD 2.7m) convertible senior loan note to shareholder Farmer Business Developments plc, seeking to cover ongoing development and working capital needs.
The unsecured loan note bears an annual coupon of 5% on outstanding capital balances. Farmer Business, which currently owns 26.79% in the green energy firm, can convert the notes into Kedco stock after January 1, 2014 at a conversion price will equal to the average closing mid-market price for the ten working days prior to conversion or the placing price achieved under any future equity fundraising. However, the shareholder cannot own more than 29.9% in Kedco following the possible conversion.
In addition to the EUR-2-million facility, Kedco has an unsecured working capital facility of EUR 500,000 with Farmer Business, which has no maturity and is to be repaid on demand, and also a 10% GBP-400,000 (USD 656,000/EUR 484,000) loan, due on April 1, 2016.
In a separate statement on Friday, Kedco posted a net loss of EUR 2.8 million for its fiscal 2012/13 that ended on June 30 as compared to a EUR-2.5-million deficit in 2011/12. Revenue corresponded to management expectations at EUR 2.6 million, down from EUR 10.1 million.
(EUR 1.0 = USD 1.359)
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