Drawdown is subject to satisfying the terms of the facility, which are normal for this type of transaction. Up to Euro35 million will be made available to fund the capital cost (including a contingency for cost overruns) of bringing NPN's six onshore oil and gas properties in the Netherlands to production. A further Euro5m working capital facility will be made available once NPN has reached first production. The facility will have an initial duration of 60 months from first drawdown of funds, with repayments to commence six months after scheduled first production.
Upon signature of the facilities documentation, it has been agreed that Standard Bank will be issued with three million warrants at prices based upon trade weighted prices of Northern's shares at various times within the agreement process. Standard Bank has agreed not to sell the warrants, or the shares issued upon exercise of the warrants, until the earlier of 12 months after first scheduled production or 18 months from first drawing under the facility.
Chris Foss, Finance Director of Northern, stated:
Armin Eckermann, Head of Financing - Resource Banking, of Standard Bank
Most Popular Articles