Australian-listed Silver Heritage Group says it has agreed to prepay US$2 million of its US$20 million outstanding bonds this month after its wholly-owned Nepalese subsidiary, Tiger One Pvt Ltd, secured additional banking facilities in Nepal to the tune of NPR510 million (US$5 million).
In a Monday filing, Silver Heritage said the additional facilities would see a fourth bank, Prime Commercial Bank Ltd, added to its banking syndicate and taking the role of “lead bank” alongside syndicate members Nepal Investment Bank Ltd, Sanima Bank Ltd and Civil Bank Ltd.
The group’s current banking facility of NPR750 million (US$7.4 million) will be increased to a total of NPR1.11 billion (US$10.9 million) with NPR360 million (US$3.5 million) of the additional facilities advanced to Tiger One Pvt Ltd as a bridging loan. The amount will later be added to the existing loan upon completion of “certain administrative procedures” including re-mortgaging land at Tiger Palace Resort Bhairahawa.
Interest on the bridging loan will be 13.0% per annum with interest paid quarterly in arrears, the company said. Tiger One Pvt Ltd will also be provided NPR150 million (US$1.5 million) on demand, with an interest rate of 12.0% per annum.
Silver Heritage said that the maturity dates of its remaining US$18 million in outstanding bonds had been revised with US$2 million to be paid by 31 December 2018, US$3 million by 31 March 2019, US$4 million by 30 June 2019 and the remaining US$9 million by 24 August 2019.
