By Devika Patel
Knoxville, Tenn., Sept. 23 – Alvopetro Energy Ltd. arranged a $15 million credit agreement with Cordiant Capital Inc., according to a press release.
The loan is due in three years. Interest accrues at 9.5% per annum. In addition, 3% will be paid in kind upon repayment of any facility amounts.
The company has issued warrants to the investor for 8,432,868 shares, each exercisable at $0.60 until Sept. 20, 2022.
The first $13 million tranche is expected to settle in the first week of October, and the second and final $2 million tranche will become available upon first production from the company’s Caburé natural gas development.
The natural gas exploration and development company is based in Calgary, Alta.
| Issuer: | Alvopetro Energy Ltd.
|
| Issue: | Credit facility
|
| Amount: | $15 million
|
| Maturity: | Three years
|
| Coupon: | 9.5%, payable monthly, plus 3% paid in kind upon repayment
|
| Warrants: | For 8,432,868 shares
|
| Warrant expiration: | Sept. 20, 2022
|
| Warrant strike price: | $0.60
|
| Investor: | Cordiant Capital Inc.
|
| Announcement date: | Sept. 23
|
| Settlement: | October (for $13 million)
|
| Distribution: | Private placement
|
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