NexGen Announces Conversion of US$120 Million Convertible Debentures into Equity
https://www.newswire.ca/news-r…nto-equity-833446301.html
NexGen Energy Ltd. ("NexGen" or the "Company") (TSX: NXE) (NYSE: NXE) is pleased to announce that the registered holders of the entire US$120 million
aggregate principal amount of Convertible Debentures (or, the
"Indentures") have provided notice to NexGen and the indenture trustee
that they have elected to convert into common shares of NexGen ("Common
Shares") pursuant to the terms of the trust indentures governing the
Indentures. The registered holders of the Indentures are affiliates of
CEF Holdings Limited and its shareholders ("CEF"). The Indentures
consist of US$60 million aggregate
principal amount of 7.5% unsecured convertible debentures issued by the
Company in 2016 (the "2016 Debentures") and the US$60 million
aggregate principal amount of 7.5% unsecured convertible debentures
issued by the Company in 2017 (the "2017 Debentures") both due to mature
on July 22, 2022.
Leigh Curyer, Chief Executive Officer, commented: "We are very pleased CEF have elected to convert the Indentures early totalling US$120 million into equity. The structure of the 2016/2017 Indentures have been extremely effective from a financing and strategic perspective which has facilitated NexGen's development of the Rook I Project in an optimal manner and sets the stage for NexGen to be a significant producer of clean energy fuel."
Conversion
Under the terms, the Indentures are convertible into Common Shares based on the conversion price of US$2.3261 for the 2016, and US$2.6919 the 2017 Debentures. On settlement of the conversion, CEF will move from 8.7% to ~18.7% of the issued and outstanding Common Shares of NexGen Energy Ltd.