LONDON (Alliance News) - LGO Energy PLC said Thursday that it has agreed the early termination of a pre-paid swap agreement with BNP Paribas, and has entered into a schedule of repayments at a reduced rate.
The pre-paid swap agreement has been terminated at its current value of USD10.8 million, including all future interest and fees. LGO's subsidiary Goudron E&P Ltd has now entered into a schedule of repayments of a reduced rate of USD75,000 a month for the next three months. After this, the remaining outstanding balance will be recovered over the following 19 months at a rate of around 5% per month.
The final repayment is due no later than September 2017. LGO said it is also working closely with its advisors in the US, Wellford Capital Markets LLC and Height Securities LLC, on strategic investments in the business.
"As the Company and the industry as a whole adjusts to the sustained low oil price environment, we are pleased to have reached this agreement with BNP Paribas. This will provide a firm financial platform for LGO to maintain the momentum of our oil production operations in Trinidad," said Chief Executive Neil Ritson in a statement.
Shares in LGO were up 2.4% at 0.486 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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