Argonaut advised 88 Energy Limited (ASX: 88E) (“88E”) on the refinancing of its outstanding loan of US$16.5 million with Bank of America.
Whilst the commercial terms of the agreement remain confidential, the transaction was completed on substantially similar terms to the original loan agreement, except for the extension of the loan’s maturity date from 30 June 2018 to 30 December 2022 and 88E agreeing to assign the loan from Bank of America to FCS Advisors, LCC (d/b/a Brevet Capital Advisors).
88E's Managing Director, David Wall, said:
“The refinancing of the loan, with an extension to the maturity date, provides a more than comfortable time buffer whilst we await payment of approximately US$21m in cash credits from the State of Alaska.
The current legislative session in Alaska is contemplating several solutions that could see the majority of the loan repaid this calendar year; however, detail is unlikely to be known prior to June 30, 2018.
We would like to thank Bank of America for their support in our endeavors and welcome Brevet Capital Advisors as our funding partner moving forward.”
Argonaut is delighted to have acted as 88 Energy’s financial advisor in relation to the Debt Refinancing.
Additional information regarding 88E and the refinancing can be found on the company’s website at www.88energy.com