Niko Resources Ltd. Announces Executive Changes; Announces $340 Million Proposed Credit Facility
The company announced proposed credit facility to provide $340 million in funds for the execution of the Company's strategy. The Proposed Credit Facility would provide funds to refinance certain of its existing debt obligations, including the Company's current credit facility and secured loan, to fund the Company's investment in the D6 Block and otherwise for general corporate and working capital purposes. The Proposed Credit Facility would mature on September 30, 2017. The Proposed Credit Facility would provide for a royalty payment to the lenders in the amount of 6% of revenues received from the D6 Block, commencing April 1, 2015 for a term of seven years. The Company has received consent from its current credit facility syndicate banks on a deferral from October 31 to November 29, 2013 for the date of the re-determination of the borrowing base under the facility and from November 29 to December 31, 2013 for the date of any required repayment to reflect the new borrowing base. The $33 million that the Company had placed in escrow for the benefit of its current credit facility lenders will now be applied to reduce the outstanding borrowings and the availability under the current credit facility to $47 million.