RE:Busrakham jasmine net operating profit 16.58 You should also add this. Why are we borrowing at credit card Interest rates?
On November 11, 2022, subsidiaries of the Company signed agreements with a third party marketer for a Facility, comprised of: (i) an agreement for advances in support of Wassana operations; and (ii) a commercial contract related to any crude oil production arising from Wassana operations (together, the “Facility”). The Facility provides for advances in discrete tranches, up to an initial maximum capacity of $30 million, subject to the satisfaction of a number of conditions precedent. There is provision to expand the maximum capacity up to $80 million, as may be required to support a potential future acquisition, subject to the satisfaction of certain conditions precedent and the ultimate agreement of the third party marketer. The agreement for advances has a term of two years and bears interest at a margin interest rate of 9.5% per annum on the three-month Secured Overnight Financing Rate as published by the Federal Reserve Bank of New York. The effective yield rate at December 31, 2022, is 21.6%. The Company is required to meet and maintain certain terms, conditions and covenants upon each draw date or at least semi-annually from the first draw date. Financial covenants include a coverage ratio and a liquidity ratio which are further discussed below and the Facility includes a material adverse change clause. The Facility is secured by the shares of the subsidiaries that have entered into the agreement which encompass the Company’s Gulf of Thailand assets and operations as well as certain parent company guarantees.