re: Ann: Executes Commitment Letter for Debt ... Junior UK partner Empyrean (EME:LSE) has formally accepted a USD50m, 3 year facility from Macquarie for Sugarloaf:
"...US$10 million will initially be available following completion of the facility documentation and conditions precedent being met. A further US$5 million would subsequently become available, if necessary, subject to increases in proven reserves that are expected to be gained via the drilling and successful completion of further development wells. The balance of funds would become available, if necessary, subject to further reserve hurdles being agreed upon and met....
...It is anticipated that draw downs on the Facility will be in multiples of US$1 million. The Facility will have a 36 month initial term. The interest rate will be based on LIBOR plus a fixed % per annum. The Facility also requires that options be granted to Macquarie as draw downs occur. The options are in three tranches - the first tranche of 15,000,000 options will have a strike price of 8p the second tranche of 15,000,000 options will have a strike price of 10p and the third tranche of 15,000,000 options will have a strike price of 12p. The first two tranches of options will vest upon the completion of facility documentation and US$10m being made available. The third tranche of options will vest upon a further US$5m being made available and the first US$1m of that amount being drawn down."
===========================================================
EME is currently trading at 7p
All of the Macquarie options are exercisable at prices higher than current.
EKA might grant options at 40c, 50c, 60c if this pattern is followed.
Perhaps EKA will grant options in tranches of 4.5m at those prices? All said and done, that would not be excessive dilution.
Interesting that EME & EKA have negotiated the same level of facility. EKA's WI is 6.25% vs 3% for EME.
- Forums
- ASX - By Stock
- EKA
- Ann: Executes Commitment Letter for Debt Facility
Ann: Executes Commitment Letter for Debt Facility, page-2
Featured News
Add EKA (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, CEO
Anthony Noble
CEO
SPONSORED BY The Market Online