Phoenix Global Resources Announces Additional Vaca Muerta Funding

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(Phoenix Global, 4.Feb.2019) — Further to Phoenix Global Resources plc’s announcement on 6 December 2018, the company announced additional funding arrangements.

The existing convertible revolving credit facility with Mercuria Energy Netherlands BV, part of the Mercuria Group, increased to $235 million, providing immediate additional funds of $50 million (the Amended Convertible RCF). Additional funds will be used to support the first phase of the Group’s 2019 business plan.

The Amended Convertible RCF will provide immediate additional funds of $50 million and bears interest at a rate of 4% over 3-month US$ LIBOR with a maturity date of 31 December 2021. The Amended Convertible RCF has two tranches, a facility A commitment of $160 million (Facility A), which was entered into in February 2018 and a facility B commitment of $75 million (Facility B). Facility A will be amortised in equal quarterly repayment instalments from 30 June 2019 until maturity with the right to convert all or part of Facility A into additional new ordinary shares of Phoenix at a price of 45 pence per share at any time from 30 June 2018 until 10 business days prior to the maturity date. Facility B will be amortised in equal quarterly repayment instalments from 31 December 2019 until maturity with the right to convert all or part of Facility B into additional new ordinary shares of Phoenix at a price of 28 pence per share at any time from 30 June 2019 until 10 business days prior to the maturity date.

The right to convert Facility B is subject to appropriate shareholder resolutions, in relation to the authority to allot and disapplication of pre-emption rights in relation to such shares, having been approved. The company intends to propose the relevant resolutions at its annual general meeting to be held this year.

Mercuria Group is a substantial shareholder of the company and a related party under the AIM Rules. The entering into of the Amended Convertible RCF constitutes a related party transaction under the AIM Rules. The directors of the company, except for the two Mercuria directors (being Mercuria’s designated directors under the Relationship Agreement between Phoenix and certain Mercuria Group companies), having consulted with the company’s nominated adviser, Stockdale Securities Limited, consider that the terms of the Transaction are fair and reasonable insofar as the company’s shareholders are concerned.

Anuj Sharma, CEO of Phoenix said: “I am pleased to announce that funding is in place to support the first phase of our 2019 work program, which will allow Phoenix to continue to develop its highly attractive asset base. Management will be providing an update on operational activity towards the end of February.”

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