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49 North sets meeting date to restructure convertibles
Chicago, Feb. 3 – 49 North Resources Inc. has set a meeting date on March 22 to restructure its 2015 2.5% convertible senior secured debentures, series 1, 2015 2.5% convertible senior secured debentures, series 2 and 2015 2.5% convertible subordinated secured debentures, according to a news release.
The company is seeking to extend the maturity date by three years.
Additionally, the conversion price would be reduced to C$0.15 per share from C$0.20 per share for the remaining life of the notes.
The company also wishes to have the right to redeem the notes in whole or in part on not more than 60 and not less than 30 days prior notice at par plus interest, subject to the right of the holders to convert prior to such prepayment.
Additionally, the company wants to add a covenant that 50% of the net proceeds of any financing it closes during the term of the debentures will be used to redeem the principal of and interest on the debentures, on a pro rata basis.
The proposed amendments are a result of discussions with debentureholders.
If the amendments become effective, the defaults of the company resulting from the company failing to pay the principal amount of the debentures on June 30, 2020 and Dec. 18, 2020 shall be waived.
At least 66 2/3% of the holders of the notes must approve the amendments.
The meeting will be held at the offices of 49 North at 224 Fourth Avenue South, Saskatoon, Saskatchewan at 11 a.m. ET on March 22. However, noteholders can vote, and are encouraged to do so, before the meeting.
Physical distancing measures will be put in place for noteholders who regard their presence as essential at the meeting.
49 North is a Saskatoon, Sask.-based oil and gas exploration, development and production company with a resource investment portfolio and strategic operations in financial, managerial and geological advisory services and merchant banking.
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