LONDON (Alliance News) - Jupiter Energy Ltd on Friday said it has reached an agreement with its convertible note holders to rollover the 12.4 million convertible notes, with a total value of USD20.8 million, into promissory notes with a repayment date of July 1, 2018, and agreed a new framework funding agreement with Waterford Petroleum Ltd to fund its operations.
The new promissory notes will be unsecured and pay an interest rate of 15% per year. The interest rate will accrue and will be repayable with the principal, and lenders can elect to be repaid if there is a change of control in Jupiter, or a change in control of Jupiter's Block 31 licence in Kazakhstan.
The current convertible loans and all accrued interest were due for repayment on September 20.
These convertible loan holders are Mobile Energy Ltd and Midocean Holdings Ltd, as well as other unnamed private investors.
In a separate agreement, Jupiter said its major shareholder Waterford Petroleum Ltd has agreed to rollover its current promissory note, which at May 31 amounted to USD8.6 million in principal with USD1.2 million accrued interest, into a new promissory note, on the same terms of the promissory note offered to other convertible note holders.
Waterford Petroleum holds a 29.5% stake in Jupiter, and its previous promissory note and all accrued interest had been due for repayment on July 1 but will now be due on July 1, 2018.
Jupiter said it has also agreed a new framework funding agreement with Waterford Petroleum, which makes a further USD5.0 million available to Jupiter, by way of a new USD5.0 million promissory note. This takes the total facility available under the existing and the new framework funding agreement to USD15.0 million, including accrued interest, of which USD5.1 million is available to be drawn upon. The funding arrangement is on the same terms of its previous arrangement.
The money will be used for Jupiter's operations whilst it continued to finalise long-term funding arrangements to develop its Block 31 licence area in Kazakhstan. As such, Jupiter will have sufficient working capital until at least June 30, 2017.
Jupiter's total outstanding debt on June 1was USD30.8 million.
Shares in Jupiter were untraded on Friday, having last traded at 9.59 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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