By Lisa Kerner
Charlotte, N.C., April 5 - Xcite Energy Ltd. said it issued $50 million of unsecured loan notes to a fund managed by West Face Capital Inc., a Canadian investment management firm.
Proceeds will be used for Xcite's working capital requirements and general corporate purposes.
The notes have an initial term of 360 days and, subject to West Face approval, may be extended by Xcite by an additional 360 days.
The notes bear interest at 14% per annum payable in arrears on March 31, June 30, Sept. 30 and Dec. 31 of each year and at maturity, according to a company news release.
Interest may be paid or rolled up into the principal amount of the notes.
West Face is entitled to receive a maintenance fee equal to 1% of the outstanding principal amount of the notes 180 days from the issue date and at maturity.
Xcite may prepay the loan notes at any time after Aug. 14, 2012, either in full or in part in an amount equal to at least 10% of the principal amount outstanding, plus interest.
According to Xcite, it has paid a fee of $1 million to a third party in connection with the initiation of the transaction.
Xcite Energy is an oil exploration and development company based in Tortola, Virgin Islands.
| Issuer: | Xcite Energy Ltd.
|
| Issue: | Loan notes
|
| Amount: | $50 million
|
| Maturity: | 360 days
|
| Coupon: | 14%, payable in cash or in kind
|
| Call option: | At any time after Aug. 14, 2012
|
| Purchaser: | West Face Capital, Inc.
|
| Announcement date: | April 5
|
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