REG - Ceiba Investments Ld - Statement re Amendment of Bond Instrument

Ceiba InvestmentsAnnouncement

13/01/2025 18:00

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RNS Number : 1546T  Ceiba Investments Limited  13 January 2025

CEIBA INVESTMENTS LIMITED

 

(TICKER CBA, ISIN: GG00BFMDJH11)

Legal Entity Identifier: 213800XGY151JV5B1E88

 

AMENDMENT OF BOND INSTRUMENT (22 MARCH 2021)

 

CEIBA Investments Limited, the largest listed foreign investor solely
dedicated to investing in Cuba, announces that today it will circulate to the
holders (the "Bondholders") of the €25,000,000 10% senior, unsecured
convertible bonds due 2026 issued by the Company (the "Bonds") seeking their
approval to enter into an amendment agreement to amend the original bond
instrument dated 22 March 2021 constituting the Bonds (the "Original Bond
Instrument"). The circular ("Circular") to Bondholders and the amendment
agreement (the "Amendment Agreement") are attached to this Announcement and
can also be accessed via the Company's website www.ceibainvest.com
(http://www.ceibainvest.com) .

http://www.rns-pdf.londonstockexchange.com/rns/1546T_1-2025-1-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1546T_1-2025-1-13.pdf)

http://www.rns-pdf.londonstockexchange.com/rns/1546T_2-2025-1-13.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1546T_2-2025-1-13.pdf)

 

In RNS Announcement 0676H of 7 October 2024 we announced that Management had
been instructed to enter into discussions with Bondholders regarding the
possibility of restructuring the Bonds to change the payment schedule from a
single €25 million bullet payment due on 31 March 2026 to five equal annual
instalments of €5 million, to be made starting in 2025.

 

Based on the outcome of these discussions, it would now appear that the
required qualified majority of Bondholders support the proposal to amend the
terms of the Original Bond Instrument and approve the Amendment Agreement.

 

The final terms contained in the Amendment Agreement reflect the commitment of
the Company to prioritise the payment of the Bonds. As a result thereof, the
Amendment Agreement stipulates that following the original expiry date of 31
March 2026, the interest rate on the Bonds will increase to 15% and that
during the term that the Bonds, or any part or segment thereof, remain
outstanding the Company will make no distributions to shareholders and will
not buy back Shares in the Company.

 

Today, Bondholders will receive the Circular containing the extraordinary
resolutions to be proposed seeking the Bondholders approval of the Company's
entry into the Amendment Agreement. In order to be passed successfully, the
Extraordinary Resolutions require Bondholders together holding at least 60% of
the principal amount of the Bonds in issue to vote in favour of the
Extraordinary Resolutions on or before 31 January 2025. Subject to and
following the successful passing of the Extraordinary Resolutions the Company
will thereafter enter into the Amendment Agreement amending the terms of the
Original Bond Instrument.

 

John A. Herring

Chairman

 

 

 

For further information, please contact:

 

 Sebastiaan Berger                                      Via NSM Funds Limited

 Singer Capital Markets                                 Tel: +44 (0)20 7496 3000

 James Maxwell / Patrick Weaver (Corporate Finance)

 James Waterlow (Sales)

 NSM Funds Limited                                      Tel: +44 (0)1481 743030

 

www.ceibainvest.com (http://www.ceibainvest.com/)

 

END OF ANNOUNCEMENT

 

 

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