Investor also to receive five-year warrants, each exercisable at $2.50
By Devika Patel
Knoxville, Tenn., Jan. 13 – Lilis Energy Inc. said it negotiated a $50 million credit facility agreement with Heartland Bank as agent and investor. The company has already drawn $3 million.
The loan matures on Jan. 8, 2018. Its coupon is equal to Prime plus 625 to 850 basis points.
Heartland Bank was paid a $75,000 commitment fee and will receive 75,000 five-year warrants for every $1 million invested, each exercisable at $2.50. The strike price is a 316.67% premium to the Jan. 12 closing share price of $0.60.
Roth Capital Partners sourced the facility was a financial advisor to Lilis.
Proceeds will be used to purchase oil and gas assets, for development projects, a debt service reserve account and general working capital needs.
“We believe that the current oil and gas market provides tremendous opportunities to pursue acquisitions of producing and reserve-rich assets at favorable valuations in the DJ Basin and in other attractive opportunities throughout North America,” chief executive officer Avi Mirman said in a press release. “Our number one priority is to utilize this capital to increase production and drive reserve growth.”
The oil and gas company is based in Denver.
| Issuer: | Lilis Energy Inc.
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| Issue: | Credit facility
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| Amount: | $50 million
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| Maturity: | Jan. 8, 2018
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| Coupon: | Prime plus 625 to 850 bps
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| Warrants: | 75,000 warrants for every $1 million invested
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.50
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| Agent: | Heartland Bank
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| Investor: | Heartland Bank
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| Settlement date: | Jan. 13 (for $3 million)
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| Stock symbol: | Nasdaq: LLEX
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| Stock price: | $0.60 at close Jan. 12
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