Cirrus Closes EUR 30 Million Financing with RBC
Cirrus Energy and its wholly owned subsidiary Cirrus Energy Nederland B.V. have signed a loan facility totaling 30 million euro. The Facility, which is fully underwritten by The Royal Bank of Scotland plc ("RBS") is a Secured Revolving Borrowing Base Facility Agreement and is comprised of a 25 million euro tranche which will support the funding of both the M1-A and M7-A development projects as well as a 5 million euro tranche which is available in the event of unbudgeted field development costs. The Facility is repayable at any time subject to certain conditions. The commitments under the Facility will reduce based on a repayment schedule which starts on December 31, 2010 and culminates on the Facility maturity date of June 30, 2012.
Cirrus' President, David Taylor, comments; "Gaining the financial support of RBS is a significant milestone for Cirrus and, together with our current working capital of over $60 million, secures the development of the M1-A and M7-A Fields. We look forward to the successful completion of both projects and to extending our future banking relationship with RBS as Cirrus grows into a full cycle international oil and gas company." Hurbinder Mudan, Head of Oil & Gas, RBS Global Banking & Markets, comments, "We are delighted to have been given the opportunity to provide this financing to Cirrus in support of its upstream developments in the Netherlands. This is a milestone transaction for Cirrus and on top of their recent successful equity raising, this places the Company in a strong position for growth. We look forward to continuing our relationship with the Company."
Cirrus Energy Corporation is an international oil and gas company headquartered in Calgary and currently has 62.5 million fully diluted common shares outstanding.