88 Energy shores up position with loan refinance
88 Energy Limited (AIM | ASX:88E) today informed the market it has successfully completed the refinancing of a loan with Bank of America regarding an outstanding balance of US$16.5 million.
The announcement follows an update from the company last month on its flagship Project Icewine, located onshore North Slope of Alaska, informing the market that it had commenced 3D seismic surveying across the project’s western margin. The company estimated the unrisked, or conventional prospective Resource potential as 1.9 billion barrels gross, or 1.05 billion barrels net to 88E, as at 31 January 2018.
The new loan agreement contains “substantially similar terms” to the original, with the exact details remaining confidential for commercial reasons. The company did advise, however, that the maturity date has been extended from 30 June 2018 to 30 December 2022.
88E has also agreed to re-assign the loan, from Bank of America to FCS Advisors, LLC (d/b/a Brevet Capital Advisors). Argonaut acted as financial advisor on the debt refinancing process.
88E Managing Director, Dave Wall commented on today’s news: “The refinancing of the loan, with an extension to the maturity date, provides a more than comfortable time buffer whilst we await payment of approximately US$21 million in cash credits from the State of Alaska.
“The current legislative session in Alaska is contemplating several solutions that could see the majority of the loan repaid this calendar year; however, detail is unlikely to be known prior to June 30, 2018. We would like to thank Bank of America for their support in our endeavours and welcome Brevet Capital Advisors as our funding partner moving forward.”
However, it is an early stage of this company’s development and if considering this stock for your portfolio you should seek professional financial advice.
Brevet Capital Advisors provides direct financing solutions to small and middle market companies across a wide range of industries. Since its inception in 1998, Brevet has advised and structured over $9 billion worth of transactions.