TerraCom Limited (ASX:TER) has been granted an ASX trading halt.
The company requested the halt pending an update on the previously announced restructuring of the company’s balance sheet.
- In principle agreement reached for a new Secured loan of USD$5 million from its existing note holders (represented by OCP Asia), which will replace the previously envisaged AUD$7 million equity placement by SPG Investment Holdings Ltd, significantly reducing Shareholder Dilution;
- In principle agreement reached for a new Facility with its existing note holders to invest in a new 5-year interest only bond that will replace their existing notes; and
- Received conversion notices from holders of USD$5 million of Convertible Notes and issued corresponding shares on 29 January 2016, further reducing the Companies debt by USD$5 million.
The halt will remain in place until the opening of trade on Wednesday 3rd February 2016, or earlier if an announcement is made to the market.
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