LET Group has pledged approximately 69.67 per cent of Summit Ascent Holdings Ltd’s total issued shares to secure the loan.
Hong Kong.- LET Group Holdings Ltd, the former Suncity Group Holdings, has announced through a company filing that it has entered into a loan agreement with four independent third-party lenders for HK$400m (US$51m) for a term of 12 months maturing on September 18, 2023.
The interest rate payable is over 18 per cent per annum; or an aggregate of 13 per cent per annum and the HK$ prime lending rate payable quarterly in arrears. The default interest rate payable would be the aggregate of the interest rate and 6 per cent per annum, payable on demand.
To secure the loan, the company and Victor Sky Holdings Limited, a wholly-owned subsidiary of LET Group Holdings, pledged 123,255,000 and 3,018,306,811 ordinary shares in Summit Ascent Holdings Limited, respectively. On the date of the announcement, the pledged shares represent approximately 69.67 per cent of the total issued shares.
LET Group Holdings said that HK$380m of the loan will be utilised for the full repayment of the promissory note including interest accrued thereon and for the partial repayment of the 2018 convertible bonds.
The company said: “Upon completion of the aforementioned repayment, the remaining outstanding amount due together with interest accrued thereon under the 2018 convertible bonds will be approximately HK$226m. The remaining balance of the loan after deducting the relevant expenses will be used as general working capital of the group.”