30 Sep 2010 12:06
30 September 2010
SeaEnergy PLC
("SeaEnergy" or the "Company")
Extension of Loan Facilities
SeaEnergy (AIM: SEA), announces that it has agreed an extension and variation to the terms of an existing loan facility (the "Transaction").
SeaEnergy, announced in April 2008 that it had secured a short term borrowing facility in aggregate amount of £2 million (the "Facility"), to provide additional working capital. The Facility was made available by LC Capital Master Fund, Ltd ("LC"), a shareholder in SeaEnergy.
The initial grant of the Facility was the catalyst for the Company to launch its 80% owned offshore wind subsidiary SeaEnergy Renewables Limited ("SERL") in June 2008.
The Facility was originally repayable in January 2009 and has twice been extended with the consent of the LC. Interest is payable at 4 per cent. per annum.
The Facility was drawn down in full in November 2009, and subsequently a repayment of £500,000 was made in February 2010, leaving £1.5 million plus accrued interest of approximately £130,000 outstanding.
LC has agreed that SeaEnergy can redraw the repayment of £500,000 made in February 2010, taking the Facility back to £2 million. In addition, LC has agreed to extend the Facility by a further £1.8 million with further draw down subject to LC's prior approval. In return LC has taken security by way a share pledge over PLC's shares in SERL. The repayment of the Facility has been further extended until the earlier of 31 December 2010 or completion of the SERL sale process.
As Steven Lampe, a director of the Company is also a managing member of Lampe, Conway & Co LLC, the investment manager of LC, this transaction must be disclosed as a related party transaction under rule 13 of the AIM Rules. The directors of SeaEnergy, with the exception of Steven Lampe, consider, having consulted its Nominated Adviser, that the terms of the Transaction are fair and reasonable so far as its shareholders are concerned.
For further information contact:
SeaEnergy PLC +44 1224 748480
Chris Moar - Finance Director
Ambrian Partners Limited - NOMAD +44 207 634 4700
Andrew Craig, Ben Wright
Kreab Gavin Anderson +44 207 074 1800
Ken Cronin, Kate Hill, Andrew Jones
www.seaenergy-plc.com
NOTES TO EDITORS
SeaEnergy PLC is the only listed pure play offshore wind energy company in the UK. SeaEnergy Renewables Limited (SERL) is a subsidiary of the Company and is made up of the team which conceived, developed and delivered the world's first deep water wind farm development - the Beatrice Demonstrator offshore wind farm (10MW) (the "Beatrice Demonstrator Project") which is owned and operated by Talisman Energy. The Beatrice Demonstrator Project involved the installation of the two largest wind turbines (5MW each) ever deployed offshore, at water depths of 45 metres. This, combined with the SERL team's expertise in delivering deep water offshore developments in the oil and gas industry, puts SeaEnergy in an unrivalled position at the vanguard of the emerging offshore renewables industry.
Prior to the UK Round 3 award SeaEnergy had secured a 25% interest in two Scottish offshore wind farms, Beatrice and Inch Cape. The award of Zone 1 in the UK Round 3 leasing programme with partners EDP Renováveis takes SeaEnergy's net capacity in the UK to over 781MW. SeaEnergy has also signed a Heads of Terms Agreement to develop offshore wind farms in Taiwan with Taiwan Generations Corporation and a Strategic Cooperation Agreement with Nantong COSCO Ship Steel Structure Co. Ltd (NCSC) to develop and market steel structures for the offshore wind industry.