Ezion resets conversion price for convertible bond, perpetual security to 28 cents from 25 cents

SINGAPORE - Ezion Holdings has reset the conversion price of its Series B convertible bonds due 2023, and its Amended Series 008 subordinated perpetual securites to a minimum conversion price of 27.63 cents from 24.87 cents previously.

As at June 13, 2018, 64.4 per cent, or $214.6 million of its Series B convertible bonds, as well as 82.6 per cent, or $98.8 million of its Amended Series 008 Securities have been converted, the liftboat and offshore assets operator said in an exchange filing on Wednesday (June 13). These were converted to ordinary shares at a discounted price of 24.87 cents.

Assuming that these transactions were completed on March 31, 2018, the company's net asset value following the conversion stands at US$453.4 million, up from US$250.8 million before the conversion. This translates to a net asset value per share of 16.3 Singapore cents, from 15.8 Singapore cents previously.

The new minimum conversion price of 27.63 cents will be applicable from June 13 to Oct 12, Ezion said.

Thereafter, the conversion price will be reset every six months, based on 27.63 cents, or the firm's volume weighted average price in the past six months, whichever is higher.

In addition, the number of bonus warrants to be issued free to security holders upon conversion of the Series B convertible bonds and the Amended Series 008 Securities have been reduced by half to 25,000 warrants with respect to $50,000 in principal amount of its Series B convertible bonds or Amended Series 008 Securities, as well as $50,000 each in principal amount in excess of those bonds or securities converted.

The issuance of these bonus warrants will be applicable from June 13 to Oct 12, after which the bonus warrants will not be issued upon conversion, Ezion said.

As at June 12, the outstanding debt from Ezion's non-convertible bonds stands at $122.5 million, while the principal amount outsanding from its convertible bond and perpetual security stands at $141.9 million.

The counter last traded down 9 per cent to 9.1 cents apiece on Tuesday.