The loan is for a term of one year, carries interest at LIBOR plus 325 basis points, and fees of US $3.5 million. The fees are made up of a facility fee of US $250,000, and an arrangement fee of two equal installments of US $ 1.625 million, the first payable after 6 months and the second on final maturity repayment or earlier repayment of the Loan.
In the event of earlier repayment of the Loan the arrangement fee shall be pro-rated.
Hussain M. Sultan Chairman of Dragon Oil commented:
'We are very pleased that ENOC, our majority shareholder, has agreed to provide us with a new one-year US$40 million loan. ENOC's continued support in Dragon is essential to us carrying out our plans for continuous drilling.'
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