Business
Bankers Petroleum expands credit facilities
CALGARY, Feb. 25 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company")(TSX: BNK, AIM: BNK) ...
About this update from Big Banc Split Corp. Class A
[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 25 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the\n"Company")(TSX: BNK, AIM: BNK) is pleased to announce that it has formally\nentered into negotiations with the International Finance Corporation ("IFC")\n(a member of the World Bank Group), and the European Bank for Reconstruction\nand Development ("EBRD") for provision of a reserve-based long-term financing\nof up to US$110 million to fund upcoming capital requirements and working\ncapital needs for the Company's Albanian projects. Subject to ongoing\ndiscussions with EBRD/IFC, completion of all required documentation for\napproval, necessary regulatory and stock exchange approvals and receipt of\nfinal approval from each of IFC, EBRD and Bankers Board of Directors, it is\nexpected that this facility will be in place during the second quarter of\n2009.\n\n\nThe credit facility is expected to consist of two six-year revolving\nfacilities, aggregating US$50 million each, and two eight-year term loans,\ntotalling US$10 million, to be used for environmental remediation purposes.\nAll of the facilities are expected to be funded equally between EBRD and IFC,\nand involve Bankers' wholly-owned subsidiary, Bankers Petroleum Albania Ltd.\nSubject to all other conditions precedent, the US$10 million term loan is\nexpected to be available immediately upon preparation and finalization of an\nenvironmental remediation action plan by Bankers, amounts under the first\nUS$50 million tranche of the revolving facility will be fully available when\nthe Brent oil price stabilizes above US$55 per barrel, and the second US$50\nmillion tranche is subject to mutual agreement among Bankers, EBRD and IFC\nwhen Bankers' production exceeds 10,000 bopd and the Brent oil price\nstabilizes above US$62 per barrel unless another suitable oil price threshold\nis agreed among Bankers and EBRD/IFC.\n\n\nAs part of the facility and subject to Toronto Stock Exchange ("TSX")\napproval, Bankers has reserved for issuance sixteen million common share\npurchase warrants (eight million for each of IFC and EBRD), subject to\ncompletion of the loan documentation. When issued, each warrant will entitle\nEBRD/IFC to purchase one common share of the Company at a price of $1.50 per\ncommon share. The warrant price represents a 25% premium to the five-day...