11 Apr 2017 15:15
Exillon Energy plc
Loan Facilities
11 April 2017
Exillon Energy plc ("Exillon Energy") (EXI.LN), an independent oil producer with assets in two oil-rich regions of northern Russia, Timan-Pechora and West Siberia, announces the signing on 7 April 2017 by its Russian subsidiary, Kayum Neft CJSC ("Kayum Neft") of facility agreements (the "Facility Agreements"), under which Kayum Neft will borrow from Gazprombank (joint-stock company) ("GPB") the aggregate principal amount of up to USD 206,000,000. The proceeds of the loans will be used for general corporate purposes.
On 10 April 2017 Exillon Energy entered into a deed of guarantee (the "Guarantee") with GPB to guarantee and secure Kayum Neft's obligations under the Facility Agreements.
The Board believes that entering into the Facility Agreements and the Guarantee is in the best interests of Exillon Energy and group companies, taking a longer term view.
The loans have a competitive interest rate above LIBOR and are free of any equity related components.
Exillon Energy and its subsidiaries will guarantee and secure the obligations of Kayum Neft under the Facility Agreements.
More information about Exillon Energy is available on its website at www.exillonenergy.com.