By Devika Patel
Knoxville, Tenn., Sept. 14 – Saturn Oil & Gas Inc. said it has agreed to a $20 million secured revolving note facility due Sept. 14, 2022 with Prudential Capital Energy Partners. It has already raised about $4.6 million.
The notes offer a combined average coupon rate of approximately 15% per year.
Saturn may elect to satisfy up to 2% of the interest through PIK notes, which will be substantially similar to the revolving notes.
Prudential also received warrants for 30,505,122 common shares, each exercisable at C$0.235, equal to the closing price of the company's shares (TSX Venture: SOIL) on Sept. 13.
Proceeds will be used for development of the Viking light oil and Success heavy oil assets in west-central Saskatchewan and to retire debt.
Saturn is a Saskatoon, Sask., public energy company focused on the acquisition and development of undervalued, low risk assets.
| Issuer: | Saturn Oil & Gas Inc.
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| Issue: | Secured revolving note facility
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| Amount: | $20 million
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| Maturity: | Sept. 14, 2022
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| Coupon: | 15% (approximate, combined average)
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| Warrants: | For 30,505,122 shares
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| Warrant strike price: | C$0.235
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| Investor: | Prudential Capital Energy Partners
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| Settlement date: | Sept. 14 (for approximately $4.6 million)
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| Distribution: | Private placement
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