GREY:PRBEQ - Post by User
Comment by
JamalAhamedon Jul 19, 2016 9:01am
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Post# 25064389
RE:New contract 22 million...
RE:New contract 22 million...JamalAhamed wrote: https://ceo.ca/@marketwired/rooster-energy-enters-into-second-amendment-and-waiver-of-note-purchase-agreement-and-announces-decommissioning-contract-44e5f
CALGARY, ALBERTA--(Marketwired - Jul 18, 2016) - ROOSTER ENERGY LTD. (or the "Company") (www.roosterenergyltd.com) (TSX VENTURE:COQ) today announces that effective June 30, 2016, it entered into a Second Amendment and Waiver to the Amended and Restated Note Purchase Agreement (the "Second Amendment") pursuant to which it issued senior secured notes in the amount of US$60 million (the "Notes") due on June 25, 2018.
The Notes are secured by a first priority security interest, lien and mortgage on all of the assets of the Company. Pursuant to the Second Amendment, the EBITDA and leverage ratio covenants of the credit facility are waived for the fiscal quarter ending September 30, 2016, and the asset coverage ratio covenant is waived for the fiscal quarter ending December 31, 2016. The scheduled loan amortization has been waived for the remainder of fiscal year 2016, and replaced with a requirement for principal repayments summing to no less than $7,532,000 for the six months ending December 31, 2016. The Notes will continue to bear interest at a rate equal to Libor + 11.5% per annum (minimum of 13.0%) with interest payments due monthly; the Notes will also continue to bear additional interest for the term of the term of the waiver period at the rate of eight percent (8.0%) per annum that shall be payable in kind. Lastly, the Company has agreed to enter into fixed price commodity swap agreements covering 50% of its estimated proved developed producing natural gas production for a 24 month period, thru August 2018.
The Company is also pleased to announce that it has entered into a new decommissioning contract in the Gulf of Mexico. Total revenues under the "lump sum" contract will be approximately $22 million when the work is completed. The work is scheduled to commence in August, 2016
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