Ascent Resources agrees extensions to its debt maturities

The AIM-traded firm reorganised the debt owed to Riverfort, which totalled £0.38m in February 2020, to be a zero coupon bullet repayment falling due on 14 February 2022.

It said it had since repaid £0.11m of the outstanding loan balance, and as a result, £0.27m was outstanding.

The company and the lender had now agreed to extend the maturity of the loan, making it repayable in six equal monthly cash instalments of £45,003 per month from 14 February 2023, with the loan being redeemed in full by 14 July 2023.

Additionally, Ascent said entered into a £0.5m loan facility in December 2020, of which a balance of £0.25m plus an 8% coupon currently remained owed to the lender, with all other amounts borrowed under the facility having already been repaid via the exercise of the 7.5p warrants that were issued at the same time.

“The outstanding balance was due to mature on 31 December 2021, however the company and the lender have agreed to extend the maturity date to 31 December 2022 when the loan plus accrued coupon will now become payable,” the Ascent board said in its statement.

“As part of the loan maturity extension agreements, the company has agreed to issue the lender 3,600,000 new equity warrants, exercisable at 7.5p per new warrant share at any time over the next two years.”

At 1039 GMT, shares in Ascent Resources were down 2.45% at 3.78p.