2015-11-26 07:08 ET - News Release
Mr. William Andrew reports
LONG RUN EXPLORATION LTD. CONFIRMS DEPOSIT OF $10 MILLION IN ESCROW PURSUANT TO THE PROPOSED PRIVATE PLACEMENT
Long Run Exploration Ltd. has been advised by the escrow agent that it has received the $10-million required to be deposited in escrow by Nov. 30, 2015, in connection with the proposed private placement with Maple Marathon Investments Ltd. The escrow funds are being held by the escrow agent in Canada.
The escrow funds will be applied to Maple Marathon's subscription under the proposed private placement of $100-million and would also be utilized to satisfy amounts that are payable to Long Run by Maple Marathon or reimbursement of Long Run's expenses in certain circumstances. Long Run and Maple Marathon continue to work toward the completion of the proposed private placement, which is expected to occur in late January, 2016, following the receipt of regulatory and shareholder approvals.
On May 29, 2015, the Company completed the semi-annual review of its credit facilities with its banking
syndicate. Credit facilities were maintained at $695.0 million. The amended credit facilities consist of a
$410.0 million revolving syndicated facility, a $40.0 million revolving operating facility and a $245.0 million non-revolving syndicated facility. Bank fees related to the amended credit facilities totalled $3.5 million. At September 30, 2015, $595.6 million was drawn against the credit facilities (December 31, 2014 - $611.7 million).
So that mean we already have 100 millions paid back and with 100 millions from the chinese we are short 45 millions
So we almost can pay with cash flow.
That said most of the hedge are falling on 31 dec 2015 . So we can expect to loose around 17 million quaterly cash flow at curent oil/gas price.
So we will be above the ratio the bank want debt/ebitda 4.5-5 and interest coverage 2.75.
This should be manageable , maybe a litle bit of assets sale ...
We should be able to weather this storm !!
Read more at https://www.stockhouse.com/companies/bullboard/bullboard/t.lre/long-run-exploration-ltd#UHqXwuAXE03AD2rd.99