3rd Oct 2019 11:51
(Alliance News) - Igas Energy PLC on Thursday said it has signed a USD40 million senior secured reserve-based lending facility with BMO Capital Markets.
The exploration and production company said, in addition to the committed USD40 million reserve-based lending, a further USD20 million accordion facility is available on an uncommitted basis, subject to new bank commitments.
The reserve-based lending has a five year term and matures in September 2024.
The proceeds from the new reserve-based lending will be used to repay the secured bonds, fund development opportunities in the conventional portfolio and for general corporate purposes, Igas said.
Therefore, the company exercised its call option and issued a redemption notice with respect to all outstanding bonds pursuant to the 10% senior secured callable bond issue 2013/2018.
"We are extremely pleased to announce that we have signed a USD40 million reserve-based lending facility with BMO," said Chief Executive Stephen Bowler.
"The facility reduces our overall cost of debt and provides the financial flexibility for continued investment into our conventional portfolio to grow our production over the coming years," added bowler.
Igas Energy shares were trading 2.8% lower on Thursday in London at 52.00 pence each.
By Evelina Grecenko; [email protected]
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