Tethys Petroleum Limited: US$7.5 Million Convertible Loan
May 15, 2015
GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May 15, 2015) - Tethys Petroleum Limited ("Tethys" or the "Company") (TPL.L)(TPL.L) is pleased to announce that it has signed and closed a binding agreement for a US$7.5 million convertible loan facility.
- Financing: Unsecured convertible loan facility
- Principal: US$7.5 million
- Term: 2 years
- Interest rate: 9% p.a.
- Conversion price: US$0.10
- Lender: AGR Energy Limited No. 1
John Bell, Executive Chairman, said:
"We are very pleased to complete this financing which provides security and stability for the Company as we advance the strategic review that we are working on with Macquarie Capital."
The conversion price is at a 30% premium to the one-month VWAP of US$0.0765 (closing price on May 14th, 2015 was US$0.075).
The debenture is redeemable prior to maturity for an amount equal to the principal outstanding together with any accrued interest and an early redemption fee of 3.5% of the principal amount to be redeemed. The debenture contains events of default provisions, including as a result of the failure to obtain any required governmental approvals to the conversion of the debenture.
A copy of the convertible debenture and subscription agreement will be filed on SEDAR in a timely manner.
Confirmation has been received that US$5 million has been wired to the Company with expected receipt of funds today with the remaining balance of US$2.5 million due to be received early next week.
The Company is also in discussions with a major shareholder for a facility of a lesser amount (expected to be up to c. US$2 million), on substantially the same terms.
Separately, and as an option being considered as part of the ongoing strategic review, Tethys is pleased to announce that it has entered into a limited period of exclusivity with AGR Energy Limited No. 1 ("AGR Energy") to negotiate a potential larger financing. The exclusivity period runs through to June 12th, 2015 and is subject to certain customary exceptions.
Tethys is focused on oil and gas exploration and production activities in Central Asia and the Caspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
About AGR Energy
AGR Energy is a company owned by the Assaubayev family, who are long-term investors in natural resources and metals and mining, and have a track record of effective investment and support of enterprises, particularly in Central Asia and other emerging markets.