RNS25 Jan 2010 07:37
Short term funding sorted until monies arrive from sale of Italian asset.
Amendments to Bank Facility
TIDMSE.
RNS Number : 0284G
Stratic Energy Corporation
25 January 2010
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NEWS RELEASE
Amendments to Bank Facility and Additional Line of Credit
CALGARY and LONDON, January 25, 2010 - Stratic Energy Corporation (TSX Venture:
'SE', AIM: 'SE.') ("Stratic" or the "Company") announces the signature of loan
facility amendment agreements with its banking syndicate incorporating an
additional line of credit. The amendments provide, inter alia, for the deferral
of year-end 2009 scheduled debt repayments totaling approximately $25 million,
until receipt of the proceeds of the previously announced sale of the Company's
Italian business, expected around the end of the first quarter, 2010. In
addition, the amendments provide an additional line of credit of approximately
$10 million available for general corporate purposes, also to be repaid from the
proceeds of the sale of the Italian business. At December 31, 2009 the Company
had cash (excluding restricted cash) of approximately $6 million, and
outstanding loans from its banks of $48 million.
Kevin Watts, Stratic's President and Chief Executive, commented: "The new
banking arrangements provide us with increased near term flexibility to pursue
our ongoing investment programme. These agreements represent further progress in
our work over the last year as we look to take the business forward. We are
therefore pleased to have finalized these agreements, which are in line with the
bank discussions we reported as part of our third quarter 2009 results announced
in November last year."
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