Investor Addax & Oryx Group to also receive up to 12 million warrants
By Angela McDaniels
Tacoma, Wash., March 11 – Oryx Petroleum Corp. Ltd. received a commitment for a C$100 million 10½% three-year credit facility from major shareholder Addax & Oryx Group plc, according to a company news release.
The loan is drawable in two C$50 million tranches.
The lender will receive warrants to purchase Oryx Petroleum common shares. If the full C$100 million is drawn, the number of warrants received will be 12 million.
The warrants will be exercisable for three years from issue. The exercise price will be a 10% premium to the stock’s 10-day historical volume-weighted average price at the time of issue.
The pro forma ownership of Addax & Oryx Group in Oryx Petroleum will increase to 77% from 75% on a fully diluted basis if Oryx Petroleum draws down the full C$100 million and if Addax & Oryx Group exercises the 12 million warrants in full.
The credit facility and the company’s cash on hand, which totaled roughly C$110 million as of Dec. 31, will fund capital expenditures and other general and administrative expenses.
In the news release, chief executive officer Michael Ebsary said the funding commitment “significantly enhances” the company’s liquidity position “while maintaining financial and operational flexibility to react quickly to changes” in the operating environment.
The transaction closed on Wednesday.
Oryx Petroleum is an oil exploration and production company focused in Africa and the Middle East and based in Calgary, Alta.
| Issuer: | Oryx Petroleum Corp. Ltd.
|
| Issue: | Credit facility
|
| Amount: | C$100 million
|
| Tenor: | Three years
|
| Coupon: | 10½%
|
| Warrants: | Up to 12 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | 10% premium to stock’s 10-day historical volume-weighted average price at time of issue
|
| Investor: | Addax & Oryx Group plc
|
| Settlement date: | March 11
|
| Stock symbol: | Toronto: OXC
|
| Stock price: | C$3.95 at close March 10
|
| Market capitalization: | C$483.03 million
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