Silver Heritage gets extra funds for Nepal project

With the added flexibility that these Additional Facilities provide, the company has agreed to prepay US$2.0 million of the US$20 million outstanding bonds issued to Silver Heritage Limited on 26 August 2016 (the "Bonds"), on or around 25 August 2017.

Additional Facilities

A summary of the Additional Facilities is as follows:
• A fourth bank, Prime Commercial Bank Ltd, has been added to the banking syndicate of Nepal Investment Bank Ltd, Sanima Bank Ltd and Civil Bank Ltd, and will assume the role of "Lead Bank" syndicate member upon completion of certain administrative formalities; • With immediate effect, the existing syndicated banking facility of NPR 750 million (approximately US$7.4 million, "Existing Loan") will be increased by NPR 360 million (approximately US$3.S million) to a total of NPR 1,110 million (approximately US$10.9 million); • NPR 360 million (approximately US$3.5 million) of the Additional Facilities will initially be advanced to TOPL as a bridging loan ("Bridge Gap Loan") before being added to the Existing Loan on completion of certain administrative procedures including re-mortgaging land at Tiger Palace Resorts Bhairahawa in favour of the extended syndicate; • NPR 150 million (approximately US$1.5 million) of the Additional Facilities will be provided to TOPL upon TOPL's demand ("Demand Loan"), to be reviewed on a yearly basis; • Interest on the Bridge Gap Loan will be 13.0% p.a. with interest paid quarterly in arrears. Interest on the Demand Loan will be 12.0% p.a. with interest paid quarterly in arrears; • Interest on the Existing Loan will increase from 10.5% p.a. to 12.0% p.a., which is the current market rate in Nepal. Interest rates will continue to be reviewed periodically and adjusted in line with local market conditions; and • There is no change to the repayment dates as under the Existing Loan, which is by 38 quarterly installments commencing in April 2018.

Partial Prepayment of US$2.0 million of the Bonds

On or around 25 August 2017, being the next interest payment date of the Bonds, the Company will redeem US$2.0 million of Bonds at the Redemption Price of uS$2,134,000. The maturity dates of the remaining US$18,000,000 of the Bonds shall be revised to the following:

US$2.0 million on or before 31 December 2018 at the Redemption Price; US$3.0 million on or before 31 March 2019 at the Redemption Price; US$4.0 million on or before 30 June 2019 at the Redemption Price; and US$9.0 million on or before 24 August 2019 at the Redemption Price. 

The "Redemption Price" is a price that will entitle the bondholders to an internal rate of return equal to 15.0% p.a. on the original principal amount of the Bonds, calculated on a semi-annual basis.