Phoenix Global Resources PLC Additional Funding (4297N)
February 01 2021 - 01:00AM
UK Regulatory
TIDMPGR
RNS Number : 4297N
Phoenix Global Resources PLC
01 February 2021
1 February 2021
Phoenix Global Resources plc
("Phoenix" or the "Company")
Additional Funding
Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the upstream
oil and gas company, announces an update on funding
arrangements.
At 30 June 2020 a facility of US$ 291 million ("Revolving
Convertible Facility") was available to the Company from Mercuria
Energy Netherlands BV ("Mercuria"), part of the Mercuria Group,
with a total of US$ 281 million drawn down under this convertible
facility. The undrawn balance of US$ 10 million was made available
through a non-convertible bridging facility (the "Bridging
Facility"), whilst the parties discussed the restructure of the
Revolving Convertible Facility. The Revolving Convertible Facility
currently provides for a grace period for repayments (interest and
principal) from 1 January 2019 to 31 January 2021 with a maturity
date of 31 December 2021 and carries interest at US$ LIBOR plus 4%.
The Bridging Facility was subsequently increased to US$ 11.5
million; it carries interest at US$ LIBOR plus 4% and is not
convertible. The Bridging Facility is fully drawn and is repayable
by 31 January 2021.
As disclosed in the 2020 interim results, Mercuria stated its
intention to provide financial support to the Company in order that
the Company could continue to operate and service the Company's
liabilities as they fall due for the 12-month period from 9 October
2020, the date of the release of the interim results, and agreed to
meet the Company's cash needs for this period and not demand
repayment of the loans (principal and interest), whilst discussions
between the parties to restructure the loans continued.
The Board continues to believe that it will be able to agree the
restructure of the existing debt with Mercuria and formalise an
agreement for new funding. Whilst these discussions continue,
Mercuria has agreed to increase the Bridging Facility to US$20
million, with the principal terms consistent with the terms of the
existing facility with a grace period for principal and interest to
30 June 2021 and a repayment date of 30 June 2021 and to extend the
grace period and first repayment date on the Revolving Convertible
Facility to 30 June 2021, the date by which the parties are hoping
to finalise negotiations to restructure all facilities. The loans
will continue to be unsecured.
Related Party Transaction
Mercuria Group is a substantial shareholder of the Company and a
related party under the AIM Rules. The increase of the Bridging
Facility to US$20 million, if aggregated with other transactions
carried out between the Company and Mercuria Group over the last 12
months, constitutes a related party transaction (the "Transaction")
under the AIM Rules. The directors of the Company, except for the
Mercuria director (being Mercuria's designated director under the
Relationship Agreement between Phoenix and certain Mercuria Group
companies), having consulted with the Company's nominated adviser,
Shore Capital & Corporate Limited, consider that the terms of
the Transaction are fair and reasonable insofar as the Company's
shareholders are concerned.
Ends
For further information, please contact:
Phoenix Global Resources plc Nigel Duxbury T: +44 20 3912 2800
Shore Capital Antonio Bossi T: +44 20 7408 4090
Joint broker and nominated David Coaten
adviser
Panmure Gordon Daniel Norman T: +44 20 7886 2500
Joint broker Atholl Tweedie
About Phoenix
Phoenix Global Resources is an independent oil and gas
exploration and production company focused on Argentina and listed
on both the London Stock Exchange (AIM: PGR) and the Buenos Aires
Stock Exchange (BCBA: PGR) and offers its investors an opportunity
to invest directly into Argentina's Vaca Muerta shale formation and
other unconventional resources.. The Company has over 0.9 million
licenced working interest acres in Argentina (of which
approximately 0.7 million are operated), 29.8 million boe of
working interest 2P reserves and average working interest
production of 9,236 boepd in 2019. Phoenix has signi cant exposure
to the unconventional opportunity in Argentina through its
approximately 0.6 million working interest acres with Vaca Muerta
and other unconventional potential.
The Company's website is www.phoenixglobalresources.com
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