Bema reworks debt terms

Bema Gold (TSE) wants to extend the term of its $5.6 million in convertible debentures.

The company is proposing a 2-year extension on the maturity date to May 31, 1995, retaining the original 9% coupon and lowering the conversion rate to $1 per share. Shareholders and regulators must approve the extension. The debentures, issued in June, 1990, were convertible at $2.85 in the first year, $3.25 in the second year, and are now exchangeable at $3.75 per share. As a sweetener, Bema is offering holders the right to immediately convert half their debenture position into common stock at 85 cents per share. Bema says discussions to date indicate most debenture-holders agree to the terms.