Home News Industry News Fortress Global Enterprises Provides Enhanced Terms to Proposed Debenture Amendments and Extends Consent Fee Deadline

Fortress Global Enterprises Provides Enhanced Terms to Proposed Debenture Amendments and Extends Consent Fee Deadline

Vancouver, British Columbia, September 30, 2018

Fortress Global Enterprises Inc. ("Fortress Global" or the "Company") (TSX: FGE) (OTCQX: FTPLF) announced today that it has provided enhanced terms to the amendments to the 7.0% convertible unsecured subordinated debentures of the Company due December 31, 2019 (the "Debentures") (TSX: FGE.DB.A) to be considered at the meeting of holders of Debentures (the "Debentureholders") to be held on October 1, 2018 (the "Meeting").

Based on feedback from Debentureholders, the Company has announced revised terms to the originally proposed amendments. Fortress Global now proposes the following enhanced amendments (the "Revised Amendments") to the Debentures to be considered at the Meeting:

  1. Extending the maturity date of the Debentures from December 31, 2019 to December 31, 2021. Previously, the Company had proposed extending the maturity date of the Debentures to December 31, 2022, rather than December 31, 2021;
  2. Increasing the interest rate of the Debentures from 7.0% per annum to 9.75% per annum, effective January 1, 2019 (being the commencement of the next interest rate accrual period). Previously, the Company had proposed increasing the interest rate to 8.0% per annum, rather than 9.75% per annum; and
  3. Incorporating certain restrictive covenants, including:
          a. restrictions on declaring or paying any dividend or distribution on the Company's common shares, subject to certain exceptions;
          b. restrictions on the incurrence by the Company of any indebtedness senior to the Debentures, subject to certain exceptions;
          c. to not permit any asset sales by the Company or any of its subsidiaries unless 75% of the net cash proceeds exceeding $8.5 million derived from such sale and not otherwise reinvested in the business of the Company are first applied towards the purchase or redemption of the Debentures, subject to certain exceptions; and
          d. restricting the payment of cash consent consideration and soliciting dealer fees in connection with any proposed amendments to the Debentures,
    (collectively, the "Restrictive Covenants").

A copy of the full text of the proposed Restrictive Covenants are available at Fortress Global's website at https://www.fortressge.com/extraordinary-meeting/ or upon request from the Company.

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Source: Fortress Global Enterprises

 
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