Plexus Holdings repays chunk of 2022 loan notes

Oil and gas engineering service company Plexus Holdings updated the market on the 1,550,000 convertible loan notes issued in October 2022 on Wednesday, having repaid a large portion of them.

The AIM-traded firm issued the notes at £1 each to raise £1.55m.

It said the loan notes were distributed to various entities, including OFM Investment, connected to the van Bilderbeek family; Plexus chief executive officer Ben van Bilderbeek; and non-executive director Jeff Thrall.

The issue of the notes bolstered the company's working capital, and enabled it to capitalise on the growing opportunities in its markets, particularly its re-entry into the exploration wellhead rental from jack-up rigs market, where it holds a licensing partnership with SLB.

They had a two-year term, and could be repaid in cash or converted into new ordinary shares in Plexus subject to certain conditions.

After discussions with the noteholders, Plexus said it had decided to redeem notes with a total value of £0.85m, as per the terms of the loan notes.

The redemption involved a cash payment of the principal amount plus interest amounting to 20% of the principal sum, totalling £1.02m.

Following the redemption, there were now 700,008 loan notes outstanding.

Additionally, Plexus said it had received a cash payment of $5.2m from SLB, in accordance with a new IP licence agreement signed on 2 January.

At 1550 GMT, shares in Plexus Holdings were up 3.1% at 15.98p.

Reporting by Josh White for Sharecast.com.