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Global Resources 9% Convertible holders agree a reduced coverage ratio until January

Global Resources Investment Trust announced on the 2 November that, as a result of its NAV falling to 34.58p per share, its total assets equated to 3.94x the value of its convertible. One of the covenants that GRIT has been obliged to abide by, since the convertibles were issued, is that the asset cover on the convertibles should not drop below 4x. In the event that the asset cover falls below 4x, the convertible holders have had the right to ask for immediate repayment at par. However, the trust has announced that, on 11 November 2015, a special resolution of the holders of the Loan Notes agreed, that for the period from 11 November 2015 until 31 January 2016 (save in limited circumstances) the coverage ratio requirement will be amended to 3.6:1. Following the covenant breach announced on 2 November the board had announced that they were examining their options with regards to rectifying the covenant breach. This amendment gives the board some additional flexibility to work through these options.

Global Resources 9% Convertible holders agree a reduced coverage ratio until January : GRIT

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