RE:RE: How Can They Pay?I know they can extend it, but they are not going to refinance twice in one year so be real
They will have to find a way to refinance it before end of December 2018 which was the
whole point... They must refinance under unfavorable terms
There is nothing misleading anyone except the rosy picture being told to the public by
PVG management.
sailor8 wrote: PVG
must not pay it on end of December 2018 !!! You try to mislead people in an annoying way.
By endless repeating of your plump constructed question which contains false "facts" it gets not a better question. Next one please.
--------------
Senior secured term credit facility
Pursuant to the terms of the senior secured term credit facility, the Company borrowed $350,000, which bears interest at a stated rate of 7.5%, compounded quarterly and payable upon maturity. The credit facility was fully drawn at March 31, 2018 and is secured by substantially all of the assets of the Company and its subsidiaries.
The credit facility matures December 31, 2018 and is subject to an extension for one year, at the Company’s option upon payment of an extension fee of 2.5% of the principal amount, including accumulated interest. The Company has the right to repay at par plus accrued interest after the second anniversary of closing and upon payment of 2.5% of principal prior to the second anniversary.
The embedded derivatives associated with the prepayment and extension options are recorded on the statement of financial position as other assets. For the three months ended March 31, 2018, the change in fair value of these embedded derivatives was a fair value gain of $199 (2017 – loss of $177).
As a result of the impact of the offtake obligation, the arrangement fees and the prepayment and extension options, the effective interest rate on the credit facility is 15.0%. For the three months ended March 31, 2018, the Company expensed $13,493 (2017 – nil) of interest on the credit facility to the statement of loss and capitalized nil (2017 - $9,951) to mineral properties, plant and equipment.
source: Q1, 2018 financial statement available on:
https://www.pretivm.com/investors/financials/default.aspx