9th Feb 2015 15:53
LONDON (Alliance News) - Andes Energia PLC said Monday that it has entered into a USD5 million debt facility with Mercuria Holdings Ltd, and as part of the facility, it has issued Mercuria with warrants over 4 million new shares with an exercise price of 34 pence per share, and an option over a similar number of new shares.
Andes Energia is trading up 0.4% at 30.25 pence each Monday afternoon.
Andes will use the proceeds as collateral for a bank guarantee to support a mandatory offer it is obligated to make for the shares in Interoil Exploration and Production Asa it does not already own, after it bought a 51% stake in the company in January, and for general working capital.
The option for new shares will be calculated on the basis of the Interoil share price, and if exercised will convert at no further cost to Mercuria into a number of new shares of no more than 3 million.
The facility has an interest rate of the London interbank offer rate plus 9.5 percentage points, the company said, and is repayable 364 days from the date of the draw down.
Shares in Andes are trading up 0.4% at 30.25 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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