INA - $130MM syndicated debt facility. So much for the rumor of all equity. I'm very pleased as this keeps equity portion low and leverage high...
IONA ENERGY ANNOUNCES PROPOSED CORPORATE SENIOR SECURED RESERVE BASED LENDING FACILITY OF USD$130 MILLION
Iona Energy Inc. has reached an agreement in principle with a syndicate of lenders composed of Royal Bank of Scotland PLC, Lloyds Banking Group and a third U.S. bank for the purposes of providing a $130-million (U.S.) secured reserve-based credit facility. The lenders have delivered to Iona an indicative term sheet, final credit approval has been obtained from Lloyds Banking Group, and first-stage credit approval has been obtained from Royal Bank of Scotland and the U.S. bank based on terms and conditions within the term sheet in the usual manner. Final credit approval from Royal Bank of Scotland and the U.S. bank is anticipated to be obtained on or about March 27, 2012.
In accordance with industry practice, the credit facility is subject to continuing and customary due diligence, as well as completion of definitive credit agreements. Drawdowns on the credit facility will be subject to such conditions precedent and covenants as are typical of reserve-based credit facilities. The credit facility is intended to be for a term of five years. All amounts advanced under the credit facility will be related to Iona's interests and development work programs within the Trent and Tyne gas fields, the Kells oil field, and the Orlando oil field.
AI
