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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February 01, 2021 02:00 ET (07:00 GMT)

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