Xcite Energy issues unsecured loan notes

Oil and gas producer Xcite Energy has closed on the issue of 10m dollars worth of unsecured loan notes to a fund managed by West Face Capital. The notes have an initial term of 236 days and may, subject to West Face's approval, be extended by Excite for a further 360 days. They have an interest of 14% per annum, which is payable in arrears on four pre-agreed dates in each relavent year. West Face is entitled to receive a maintenance fee equal to 1.0% of the outstanding amount of the notes 180 days from issue date and at maturity. The company has paid $0.2m to a third party in connection with the initiation of the transaction. Excite can repay the loan notes any time after August 14th of this year, either in full or in part if it equals at least 10% of the outstanding amount, The funds will be used to provide contingency funding during the important Phase 1A work programme on the Bentley field.The share price rose 1.3% to 78p by 08:47.NR