fastjet secures GBP15.68m convertible securites deed to fund growth

fastjet announced (08-Mar-2013) it has entered into a convertible securities deed with Bergen Global Opportunity Fund, an institutional investment fund managed by Bergen Asset Management, in connection with zero coupon convertible securities with a nominal amount of up to GBP15.7 million. fastjet CEO Ed Winter said: "This agreement with Bergen gives us access to very significant funding over the next year on a flexible basis and will provide us with a solid platform on which to grow the business and expand our operations in Africa. The investment structure potentially reduces the dilution to existing shareholders and gives us the opportunity to restructure parts of the business and adapt our business model in the light of our experience so far in Africa. Securing this funding will assist us in our core objective of making fastJet the first pan-African low-cost airline and meeting the growing demand for air travel across the continent." The convertible securities will (subject to the satisfaction of certain conditions) be issued in six tranches and the company will make an announcement of the issue of each Convertible Security. The initial convertible security will have the nominal value of GBP2.6 million. The second Convertible Security is expected to be issued within 100 days with the nominal value of GBP2.6 million. Each of the four subsequent Convertible Securities will be issued 60 days after the date of issuance of the previous Convertible Security and have the nominal value of GBP2.6 million. The initial Convertible Security will have an 18 month term. The subsequent Convertible Securities will have a term ending on the date that is 15 months after the date of issuance of the second Convertible Security. [more - original PR]