Banco de Servicios y Transacciones (BST) committed to providing a new credit facility of up to $14 million to Crown Point Energy. The facility will be used to fund a portion of the company’s purchase of all outstanding shares of Apco Austral.
The new credit facility is expected to have an interest rate of between 7.5% and 9% per annum (depending on market conditions on the disbursement date); require monthly payments of principal and interest; be pre-payable, in whole or in part, without penalty and have a maturity date of 60 months from the date that funds are disbursed.
As collateral, Crown Point intends to assign all cash flows of Apco Austral after deducting certain cash flows required for capital expenditures and operational expenditures as agreed to by the company and the lenders, to a guarantee trust for the benefit of the lenders. Crown Point will also pay a fee to BST equal to 0.25% of the amount drawn under the new credit facility (for a maximum fee of $35,000) and will reimburse BST for its expenses to a maximum amount of $25,000.
Crown Point Energy is an international oil and gas exploration and development company headquartered in Calgary, Canada, with exploration and development activities focused in two of the largest producing basins in Argentina.
