NR : Orbite Declares Intention to Purchase 2012 Debentureshttps://www.stockhouse.com/news/press-releases/2015/09/09/orbite-declares-intention-to-purchase-outstanding-2012-debentures
MONTREAL, QUBEC--(Marketwired - Sept. 9, 2015) - Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Company") today announced its intent to purchase all outstanding 8% convertible secured debentures issued on December 13, 2012 (the "Debentures") as per the terms of the Indenture of that date. The Debentures, the outstanding principal of which amounts to $25M, will be purchased for a price of $1,000 for each $1,000 of outstanding principal amount plus unpaid accrued interest.
"The redemption of the Debentures will increase cash available for operations by $2.0 million on an annual basis due to a reduction in interest payments," stated Jacques Bdard, Orbite's CFO. Additionally, the 2012 and 2013 refundable investment tax credits received, against which the debentures were collateralized, exceed the $25M of the principal amount of outstanding debentures by $1.0 million, and will be used against the Company's capital expenditures at its HPA facility."
The holders of redeemed Debentures shall also receive share purchase warrants (the "Warrants") concurrently with the redemption of the Debentures in accordance with the terms of the Indenture. Each such Warrant will entitle its holder to purchase one Class A share of the Company at a price of $3.50 until December 13, 2017. The Debentures are expected to be redeemed on October 16, 2015. Orbite reserves its right to withdraw the redemption at any time on or prior to October 13, 2015.
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