By Susanna Moon
Chicago, July 18 - Equator Exploration Ltd. said it secured $7.5 million facility with a shareholder lender and will immediately draw $2.5 million from the facility.
Under the loan agreement, the company will issue 10,989,000 warrants exercisable at 0.35p to the shareholder lender in consideration for the $7.5 million facility.
Under the $2.5 million drawdown, the company will issue 3,663,000 of the total warrants consideration. The funds will be due Nov. 1, 2009 and bear interest at 8% per year.
As previously announced, the facility will share in the collateral security pool, which pledges Equator's interests in Equator Exploration JDZ Block 2 Ltd. and Aqua Exploration Ltd. as part of the conditional merger agreement and financing.
Proceeds will be used for working capital.
Based in London, Equator is an oil and natural gas exploration company.
Issuer: | Equator Exploration Ltd.
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Issue: | Loan facility
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Amount: | $2.5 million draw down of total $7.5 million facility
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Maturity: | Nov. 1, 2009
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Interest: | 8% for initial $2.5 million
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Warrants: | 3.663 million for first drawdown; 10,989,000 total
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Warrant strike price: | 0.35p
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Announcement date: | July 18
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Stock symbol: | London: EEL
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Stock price: | 42.25p at close May 4
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