Five-year deal with Credit Suisse could be increased to C$80 million
By Devika Patel
Knoxville, Tenn., Dec. 1 - Estrella International Energy Services Ltd. said it arranged a C$32 million five-year credit facility with two subsidiaries of Credit Suisse. The facility may be increased to C$80 million.
The company drew down C$14.25 million at closing and may draw down an additional $2.5 million.
The loan bears interest at Libor plus 8% and will be amortized quarterly over five years, with the first amortization happening 15 months after closing.
Credit Suisse also received 3,072,000 warrants. The warrants are exercisable for common stock at $0.91 per share for four years.
The strike price reflects a 22.97% premium to the Nov. 30 closing share price of $0.74.
Proceeds will be used to purchase additional rigs in Estrella's operating region and for working capital. The initial draw was used to satisfy the cash portion of the company's acquisition of Colombian-based STS de los Andes SA, which settled concurrently with the credit facility.
Estrella is an oilfield services company based in Calgary, Alta.
| Issuer: | Estrella International Energy Services Ltd.
|
| Issue: | Credit facility
|
| Amount: | C$32 million
|
| Maturity: | Five years
|
| Interest rate: | Libor plus 8%
|
| Price: | Par
|
| Warrants: | 3,072,000
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.91
|
| Investor: | Credit Suisse
|
| Settlement date: | Dec. 1 (for C$14.25 million)
|
| Stock symbol: | Pink Sheets: EENZF
|
| Stock price: | $0.74 at close Nov. 30
|
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