Sound Energy secures EUR29million bond subscription


Sound Energy, the European/Mediterranean focused upstream gas company said investment firm Greenberry has subscribed for EUR28.8 million bonds, adding it it will also issue 70.3 million warrants for new shares at a price of 30 pence per share.

Sound has signed heads of terms with Greenberry for it and other investors to subscribe for bonds. Greenberry has subscribed for the five-year non-amortising bonds.

The proceeds from the bond issue will be used to settle its EUR7million Nervesa reserve-based lending facility provided by Greenberry, which is due to mature in November, as well as its £7million corporate loan from Greenberry, which is due to mature in July, 2017.

Sound said it will issue 70.3 million warrants to subscribe for new shares at a price of 30.00p per share and an exercise period of around five years to Greenberry.

The issue of 3.4 million of the warrants will remain subject to approval from Sound’s shareholders at its annual general meeting on June 29.

Its GBP1.0 million loan provided by its Chairman Simon Davies will remain in place, it said.

Sound Energy said EUR6.0 million will be used “to pursue its growth strategy”.