Range Resources plans $20m convertible loan note

(ShareCast News) - Range Resources plans to issue a three-year, $20m convertible note after inking an agreement with LandOcean Energy Services Co Ltd.It said proceeds from the note would be used solely to replace a portion of the outstanding payable balance due to LandOcean under the terms of the Integrated Master Services Agreement.AIM-quoted Range noted the conversion price was at a significant 130% premium to the closing price of 0.38p on 28 October.At today's exchange rate, if LandOcean were to convert the full amount of the convertible loan, they would hold an interest of about 19.9% in the enlarged share capital."LandOcean will have the right to appoint one Director to the Board of Range at any time when the value of the outstanding note and any conversion shares held exceeds $10m, and have the right to appoint one further additional Director when the value is a minimum of $20m," Range said in a statement.In addition to the note, LandOcean would continue to provide Range with financing for work undertaken in Trinidad under the IMSA on the same terms currently offered. The agreement still requires shareholder approval by both companies.At about 13:43 GMT, shares in Range were up 6.52% to 0.4p.