Macquarie Provides Suroco Energy Facility Amendment
Suroco Energy announced that it entered into an amendment to the senior-secured credit facility it entered into on March 15, 2013 with Macquarie Bank Limited, wherein an additional $10 million in committed funds has been made available to the company.
The company entered into the credit agreement to obtain a $21 million senior-secured credit facility, with the potential to increase to $100 million upon compliance by the company with certain conditions and at the discretion of Macquarie.
The First Amendment provides an additional $10 million tranche that is available for drawdown for a period of 12 months. This tranche will bear interest at a rate of LIBOR plus 8% percent.
Also, the company will issue non-transferable common share purchase warrants to Macquarie entitling Macquarie to purchase up to 1,000,000 common shares of the company at a price of $0.385 per share until January 30, 2018, subject to reduction or cancellation in accordance with Policy 5.1 – Loans, Bonuses, Finder’s Fees and Commissions of the TSX Venture Exchange. The issuance of the warrants is subject to the approval of the TSX Venture Exchange.
Calgary-based Suroco Energy is a junior oil and gas company that explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia.