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GDL Greka (DI)

1.30
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Greka (DI) LSE:GDL London Ordinary Share KYG411101002 ORD USD0.00001 (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1.30 1.10 1.50 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Greka Drilling Limited Debt Financing (4467K)

21/09/2016 11:28am

UK Regulatory


Greka Drilling (LSE:GDL)
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RNS Number : 4467K

Greka Drilling Limited

21 September 2016

21 September 2016

Greka Drilling Limited

("Greka Drilling" or the "Company")

Debt financing

Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional oil & gas driller in Asia, announces that it has secured a further US$3 million in loan financing from Guaranty Finance Investors LLC ("GFI"), the proceeds of which it expects to use for working capital purposes. The first US$1.5 million tranche of the loan has been received, and the second tranche of the same amount will be paid to the Company by 28 October 2016. The loan, on which interest is payable at the rate of 7% per annum, is repayable on 30 September 2019 and is unsecured (although first priority would be granted to the GFI loan if the Company created any security over its drilling rigs in relation to other indebtedness).

As part of the financing, the Company has agreed to issue GFI with warrants to subscribe for a total 21,000,000 new ordinary shares in the Company (10,500,000 on the receipt of each tranche of the loan) at an exercise price of 5p per share, representing a premium of 67% to the Company's closing share price on 20 September 2016. The warrants are exercisable at any time between 30 September 2017 and 30 September 2019. At any time after 30 September 2017 the Company may elect to prepay the loan, provided that the amount repaid (including interest paid previously) would provide GFI with a total annual return of 25%; any such prepayment would be deemed to have redeemed the warrants in lieu of issuing new shares. In the event the Company elects not to pre-pay, the cost of capital for the loan facility would be 7%.

Mr. Randeep S. Grewal, Chairman of Greka Drilling commented:

"The timely financing provides the Company with the needed working capital to re-commence drilling operations in China and support the continued operations in India. In this challenging oil & gas services market, we are appreciative of the continued timely support from GFI."

For further information on Greka Drilling, please refer to the Company's website at www.grekadrilling.com or contact:

 
Sarah Lowther 
 Media Relations                 +44 (0)20 7016 
 Greka Drilling                       9829 
 
Dr Azhic Basirov / David Jones 
 / Ben Jeynes 
 Nominated Adviser and Broker    +44 (0)20 7131 
 Smith & Williamson                   4000 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCAKDDBKBKDOCB

(END) Dow Jones Newswires

September 21, 2016 06:28 ET (10:28 GMT)

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