Resverlogix Secures Increase to Citibank Loan to $38.8 million

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[{"type":"text","content":"\n\n\n\n\n\nTSX Exchange Symbol: RVX\n\n\nCALGARY, March 11, 2013 /CNW/ - Resverlogix Corp. (TSX:RVX)\n (\"Resverlogix\") today announced that it has entered into an Amended and\n Restated Loan Agreement with Citibank, N.A. (\"Citibank\") increasing the\n previously announced loan granted to Resverlogix by Citibank from $25\n million to $38.8 million.. The loan is repayable upon maturity on\n August 28, 2017 and may be repaid in whole or in part after August 27,\n 2013 without penalty. Interest on the loan is payable annually in\n arrears at 4.5% per annum until August 27, 2013 and thereafter at a\n rate equal to Canadian one-year LIBOR swap rate plus 3.14%, to be reset\n annually. The loan is secured by an irrevocable $38.8 million Standby\n Letter of Credit (the \"Letter of Credit\") arranged by Eastern Capital\n Limited (\"Eastern\") which will be maintained until maturity of the\n loan.\n\n\nIn connection with the Letter of Credit, Resverlogix has agreed to\n indemnify Eastern for all liabilities, costs and expenses arising from\n any payments made to Citibank under the Letter of Credit and\n Resverlogix has pledged its issued patents and certain tax losses and\n pools to Eastern as security for its obligations under the indemnity.\n Resverlogix also issued an additional 728,640 share purchase warrants\n to Eastern in connection with the loan increase and will pay a\n guarantee fee to Eastern in the amount of 0.03% per annum on the\n average daily aggregate principal amount of the issued and undrawn\n Letter of Credit. Each warrant is exercisable at a price of $2.38 for a\n period of five years. Eastern Capital holds 13,200,000 shares of\n Resverlogix which represents 17.8% of the 74,225,183 common shares\n outstanding before giving effect to any outstanding warrants.  After\n giving effect to the transaction, assuming all warrants are exercised,\n Eastern will hold 15,248,640 shares of Resverlogix representing 19.99%\n of Resverlogix's issued and outstanding common shares based on shares\n outstanding as at today's date. Resverlogix is exempted from formal\n valuation and minority approval requirements of applicable securities\n laws on the basis that neither the fair market value of, nor the fair\n market value of the consideration for, the transaction, insofar as it\n involves Eastern, exceeds 25% of Resverlogix's ma...

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