The Company today announces that it has extended the terms of its unsecured loan agreements with Annunaki Investments (Private Limited) ("Annunaki") and SSCG Africa Holdings ("SSCG") (the "Loan Agreements").
As announced by the Company on 5 June 2018, the Company entered into the Loan Agreements with Annunaki and SSCG in order to make available a portion of the Group's restricted cash held in Zimbabwe.
The Loan Agreements were made on commercial terms and allowed the Company to lend US$5 million cash from fastjet Zimbabwe limited ("fastjet Zimbabwe") to Annunaki in return for a US$2 million loan to fastjet from SSCG for general working capital purposes across the Group (the "Unsecured Loans"). The Unsecured Loans were repayable in December 2018.
The Company has been in discussions with Annunaki and SSCG and has agreed that the terms of the Unsecured Loans will be extended to 31 March 2019. The terms of the Loan Agreements will remain the same with the exception of the following changes:
· The loan amount from fastjet Zimbabwe to Annunaki has increased from US$5 million to US$7 million due to devaluation of the underlying currency; and
· During the term of the Loan Agreement with SSCG, SSCG shall have the option to convert the US$2 million repayment plus any outstanding interest into ordinary shares in the Company (subject always to the shareholders of the Company granting the directors sufficient authority to allot and issue such shares on a non-pre-emptive basis) (the "Option to Convert") either (i) upon the happening of an event of default under the Loan Agreements, or (ii) after 28 February 2019. Any ordinary shares in the Company issued pursuant to the Option to Convert shall be issued at the higher of:
- the volume weighted average price per ordinary share over the preceding 30 trading days on the London Stock Exchange ending on the date on which SSGC has given such written notice to convert; or
- at par value.
This announcement is released by fastjet and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. This announcement is being made on behalf of the Company by Michael Muller, Chief Financial Officer of fastjet.