By Lisa Kerner
Charlotte, N.C., Aug. 8 - Xcite Energy Ltd. issued $10 million of unsecured 14% loan notes to a fund managed by West Face Capital Inc.
Proceeds will be used to provide contingency funding during the phase 1A work program on the Bentley field.
The notes were issued on the same principal terms as the $50 million of notes issued to West Face in April. They have an initial term of 236 days and may be extended by Xcite for a further 360 days.
Interest on the notes is payable in arrears on March 31, June 30, Sept. 30 and Dec. 31. At Xcite's discretion, interest can be paid or rolled up into the principal amount of the loan notes, a company news release said.
West Face is entitled to receive a maintenance fee equal to 1% of the outstanding principal amount of the notes 180 days from the issue date and at maturity.
Xcite may prepay the loan notes at any time after Aug. 14 in full or in part in an amount equal to at least 10% of the principal amount outstanding plus interest.
According to Xcite, it has paid a fee of $200,000 to a third party in connection with the initiation of the transaction.
Xcite Energy is an oil exploration and development company based in Tortola, Virgin Islands.
| Issuer: | Xcite Energy Ltd.
|
| Issue: | Loan notes
|
| Amount: | $10 million
|
| Maturity: | 236 days; may be extended for further 360 days
|
| Coupon: | 14%
|
| Call option: | At any time after Aug. 14
|
| Purchaser: | West Face Capital, Inc.
|
| Announcement date: | Aug. 8
|
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