Lynas debts and liabilities to date (UPDATED)
2017 is coming to a close in slightly more than 24 hours. It is pertinent to reflect for a moment on what had taken place in terms of Lynas financial status as a going concern.
Lynas took out two separate loans from two creditors in 2011 and 2012 to complete both phase I and II of Lynas Advanced Materials Plant in Gebenr Industrial Estate (GIE).
1.The JARE facility ( Japan- Australia Rare Earth agreement backed by JOGMAC and Sojitz) worth US$ 225 millions secured against all assets owned by Lynas. It subscribed an additional US$25 millions worth of shares at the then prevailing price of AUD 2.12/share.
2.The Unsecured Convertible bonds worth US$225 millions from MT Kellet Capital Management LP,USA.
Both facilities went through two CDRS ( Corporate Debt Restructuring Scheme) in 2014 and 2016 and payment of all outstanding loans including the deferred interest payments are scheduled to be fully satisfied by September 2020.
Currently the JARE facility still has a balance of US$ 170 millions payable as at 21st Dec 2017 while the Unsecured Bonds has US$86.5 millions worth of bonds redeemable.
Interests due semi-annually will be accrued to the final settlement of both facilities in Sept 2020.
It is interesting to note that MT Kellet Capital Management LP has through seven partial conversions of bonds this year redeemed bonds worth a total of US$ 138.5 millions. This has added a total of 1.725 billion shares to Lynas' total shares in trade!
The consolidation exercise of 10:1 executed immediately after the last shareholders' AGM in late November has reduced the Lynas' total shares in issue to 563 millions shares.