Tivan Redeems $3.95M Convertible Notes Ahead of Maturity, Eyes Asset Release
Tivan Limited has fully redeemed its convertible notes issued to SBC Global Investment Fund ahead of schedule, marking a significant step in its financial restructuring. The company now plans to remove SBC’s security interests on its assets before the fiscal year ends.
- Full redemption of all convertible notes ahead of maturity
- Final cash payment completed for second tranche notes
- 20 million shares issued as collateral, with payment pending
- Plans to remove SBC’s security over company assets by year-end
- Strategic capital raising involved L1 Capital’s investment fund
Strategic Capital Raising and Convertible Notes
In March 2024, Tivan Limited (ASX, TVN) embarked on a strategic capital raising that included a convertible note facility with SBC Global Investment Fund, a fund managed by L1 Capital Global Opportunities Master Fund. This move was designed to bolster Tivan’s financial position by securing flexible funding from an experienced investor in Australian resources companies.
The facility was structured in two tranches, an initial $2.8 million cash injection through convertible notes issued in April 2024, and a second tranche of $0.551 million issued in July 2024. Both tranches were set to mature in late 2025, with repayments scheduled over 17 monthly instalments.
Early Redemption Signals Financial Strength
Tivan surprised the market by redeeming the first tranche of convertible notes in April 2025, well ahead of the October maturity date. This early repayment was a positive signal of the company’s improving cash flow and financial discipline. The recent announcement confirms that the second tranche has also been fully redeemed, with a final cash payment of $267,650 made to SBC, ahead of the December 2025 maturity.
With all convertible notes now redeemed, Tivan has effectively discharged its loan obligations to SBC, removing a layer of financial risk and uncertainty from its balance sheet.
Collateral Shares and Future Payments
As part of the original facility agreement, SBC was issued 20 million Tivan shares as collateral without upfront payment. Following the full redemption of the notes, SBC is contractually obliged to pay for these shares within six months. To date, Tivan has received a payment notice for approximately 5.9 million shares, leaving around 14.1 million shares pending payment.
The timing and certainty of this payment remain key factors for investors to monitor, as it will impact Tivan’s equity structure and cash position.
Next Steps, Removing Security Interests
With the loan fully repaid, Tivan intends to seek the removal of security arrangements held by SBC over its assets before the end of the financial year. This move will further strengthen the company’s asset position and potentially improve its creditworthiness.
While this marks a significant milestone in Tivan’s financial management, the company’s future performance will depend on how it leverages this improved capital structure amid ongoing market conditions.
Bottom Line?
Tivan’s early debt redemption clears the way for asset freedom, but the pending collateral share payments will be a key watchpoint.
Questions in the middle?
- When will SBC complete payment for the remaining collateral shares?
- How will the removal of security interests affect Tivan’s borrowing capacity?
- What are Tivan’s plans for deploying freed-up capital following debt discharge?
