16th Jun 2014 08:03
LONDON (Alliance News) - Xcite Energy Ltd Monday said it has raised USD140 million through the placing of senior secured bonds and the issuance of new shares.
The oil appraisal and development company said it will use the money raised to refinance USD80 million of 12.5% unsecured loan notes due on December 25, and to fund Bentley field development work programme through this year, as well as for general corporate purposes.
The new bonds, issued at 90% of face value, have a two-year term and a cash coupon of 12.0%. They also provide a 3% payment-in-kind interest coupon, which can be paid in cash or via the issuance of additional shares, at the company's choice. They are secured against Xcite's assets, including its interest in the Bentley field, which is in the UK North Sea.
Buyers of the bonds also bought 11.6 million new shares at 68.5 pence per share, while one bond subscriber bought an additional 4.3 million in shares at the same 68.5p price.
"This new financing package... provides us with a stable platform to continue our planned activities this year, allowing us to further optimise the development plan and work towards completing contract negotiations with our partners," said Chief Executive Rupert Cole in a statement.
Shares in Xcite Energy were trading 0.9% higher in early trading Monday at 69.10 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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