Eros STX Global Corporation (NYSE:ESGC) jumped 4% after it announced that the £50 million bondholders of the 6.5% UK retail bond expected in 2021 had authorized potential waivers and modifications to the UK Retail Bond at a bondholders’ meeting on September 20, 2021.
The waivers and modification include the expiry date modification to April 15, 20223 from October 15, 2021, and interest rate increase to 8.5% form 6.5% effective October 15, 2021. Equally, the modifications extended the financial reporting agreements to November 30, 2021, from July 31, 2021, relative to the obligation to release ErosSTX’s audited financial statements for the fiscal year ending March 31, 2021.
Also, the modifications changed the financial reporting agreements for the interim financial reporting of six months ending September 31, 2021, to January 31, 2022, from November 30, 2021. The financial covenants and waiver also include ErosSTX’s fixed charge and leverage ratios until the initial releases of its interim finical statement for the period ending September 30, 2022, and November 30, 2022. Investors should keep an eye on ESGC.
Market Reaction:
On Thursday, ESGC stock gained 4% at $0.9558 with more than 3.54 million shares, compared to its average volume of 6.03 million shares. The stock has moved within a range of $0.9100 – 0.9799 after opening the trade at $0.9134.
