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.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Longhou Capital Markets Pty Ltd (AFSL No. 292464). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.