Serinus Announces EBRD Debt Restructuring Agreement
(Thomson Reuters ONE) -
CALGARY, Alberta, Oct. 30, 2017 (GLOBE NEWSWIRE) -- Serinus Energy Inc.
("Serinus", "SEN" or the "Company") (TSX:SEN) (WARSAW:SEN) is pleased to
announce that it has reached an agreement with the European Bank of
Reconstruction and Development ("EBRD") to restructure the terms of the two debt
facilities the Company has outstanding with the EBRD. The Company believes that
this restructuring of the debt provides the appropriate balance for the Company
to be able to meet the debt servicing requirements while also being able to make
the capital investments necessary to grow the Company to the benefit of the
equity shareholders in the Company.
The Company has two outstanding loan agreements with the EBRD, these being the
Senior Loan Facility and the Convertible Loan Facility. Both loan agreements
contain a number of affirmative covenants, including maintaining the specified
security, environmental and social compliance, and maintenance of specified
financial ratios. The new agreement provides for changes to specific terms of
each of the loan facilities as well as to the affirmative covenants.
The outstanding principal of the Senior Loan Facility is currently US$5.4
million with an interest rate of 6-month LIBOR plus 6.0% and an original
maturity date of March 2019. The original payment schedule had the principal
repayments made in twelve equal semi-annual instalments with the first repayment
made on March 31, 2015. The new agreement with the EBRD involves the following
changes to the terms of the Senior Loan Facility:
* The repayment schedule no longer requires the scheduled US$1.7 million
payments for September 30, 2017, March 31, 2018 and September 30, 2018, with
the remaining balance thereof to be paid on March 31, 2019. Instead, the
terms under the new agreement are such that the Company will make payments
of $2.7 million on March 31, 2019 and September 30, 2019, covering the
remaining balance of the Senior Loan Facility.
* The cash sweep is now computed at the corporate level, instead of only
Tunisia, on the annual and semi-annual consolidated accounts. Any cash
balance in excess of US$7.0 million is to be used to prepay the senior loan
in inverse order of maturity until the outstanding senior loan balance is no
greater than that under the original amortisation schedule.
* The interest rate of 6-month LIBOR plus 6.0% remains unchanged and the
payment of accrued interest is unchanged.
The Convertible Loan Facility has a current outstanding principal of US$25.4
million with an original maturity of June 2021 and an original interest rate of
6-month Libor plus a margin. The original margin was determined by the
calculation of the Incremental Net Revenues Percentage (INRP) for Tunisia, which
is the percentage rate equal to (i) the amount by which the Net Revenues
(revenues minus royalties) for the most recent complete Financial Year exceeds
US$35,000,000, divided by (ii) US$2,000,000 (rounded down to two decimal
points). The minimum margin is 8.0% and the maximum margin is 17.0%. Under the
new agreement, the terms of the Convertible Loan Facility have changed as
follows:
* The maturity is extended to June 2023, with accrued interest accumulation
until June 2020.
* In June 2020, the total outstanding principal plus accumulated accrued
interest will be determined and this amount will constitute the new balance
to be equally amortized over four annual payments to be made each month of
June for the years 2020 to 2023.
* From the date of the loan amortization, interest is paid on the outstanding
loan balance on each interest payment date.
* The Loan Conversion option remains as per the original agreement.
* The interest rate remains 6-month LIBOR plus the margin, but the margin is
now calculated on the consolidated net revenues of our Tunisia and Romania
subsidiaries exceeding US$25,000,000 instead of US$35,000,000 for Tunisia
alone as per the original agreement. The minimum and maximum margins remain
the same at 8.0% and 17.0%, respectively.
In addition to the specific changed terms applied to each of the loan
facilities, some of the affirmative covenants of both facilities have also been
changed. The original agreements had a debt service coverage ratio calculated on
a quarterly basis for Tunisia and at the corporate level, with a minimum ratio
of 1.3x for Tunisia and 1.5x for consolidated required to be in compliance. A
debt-to-EBITDA ratio was also calculated on a quarterly basis at the Tunisia and
corporate level in both original agreements with a maximum ratio of 2.5x for
Tunisia and 2.75x consolidated required to be in compliance. The new agreement
covenants have changed as follows:
* The debt service coverage ratio will now only be calculated on a
consolidated corporate level and only for the Senior Loan Facility starting
in December 2018. This ratio will no longer be applicable to the Convertible
Loan Facility. The minimum ratio is 1.3x.
* For the debt-to-EBITDA ratio, the maximum ratio for compliance will be
10.0x for calculation in September 2018 and December 2018, reverting to a
maximum of 2.5x for quarterly calculations from 2019 onwards.
* The definition of cash flow after debt service has been changed to exclude
any capital expenditures made from any equity proceeds raised by the
Company.
The new loan restructuring agreement will maintain the original security on both
loans, with an additional security pledge of the shares of Serinus Energy
Romania S.A., holder of the Romanian assets.
About Serinus
Serinus is an international upstream oil and gas exploration and production
company that owns and operates projects in Tunisia and Romania.
For further information, please refer to the Serinus website
(www.serinusenergy.com) or contact the following:
Serinus Energy Inc.
Serinus Energy Inc. Jeffrey Auld
Calvin Brackman Chief Executive Officer
Vice President, External Relations & Strategy Tel.: +1-403-264-8877
Tel.: +1-403-264-8877 cbrackman(at)serinusenergy.com jauld(at)serinusenergy.com
Translation: This news release has been translated into Polish from the English
original.
Forward-looking Statements This release may contain forward-looking statements
made as of the date of this announcement with respect to future activities that
either are not or may not be historical facts. Although the Company believes
that its expectations reflected in the forward-looking statements are reasonable
as of the date hereof, any potential results suggested by such statements
involve risk and uncertainties and no assurance can be given that actual results
will be consistent with these forward-looking statements. Various factors that
could impair or prevent the Company from completing the expected activities on
its projects include that the Company's projects experience technical and
mechanical problems, there are changes in product prices, failure to obtain
regulatory approvals, the state of the national or international monetary, oil
and gas, financial , political and economic markets in the jurisdictions where
the Company operates and other risks not anticipated by the Company or disclosed
in the Company's published material. Since forward-looking statements address
future events and conditions, by their very nature, they involve inherent risks
and uncertainties and actual results may vary materially from those expressed in
the forward-looking statement. The Company undertakes no obligation to revise or
update any forward-looking statements in this announcement to reflect events or
circumstances after the date of this announcement, unless required by law.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Serinus Energy Inc. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 565695
Anzahl Zeichen: 9241
contact information:
Town:
Calgary
Kategorie:
Business News
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"Serinus Announces EBRD Debt Restructuring Agreement"
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