Credit Facility Agreement
April 24 2007 - 5:49AM
UK Regulatory
RNS Number:3972V
Caspian Holdings plc
24 April 2007
Caspian Holdings Plc
("Caspian" or the "Company")
24 April 2007
Credit Facility Agreement
Caspian Holdings announces that it has concluded an unsecured credit facility
agreement to raise up to #1,000,000 at a rate of 4% over LIBOR from investors
and major shareholders.
The credit facility will be drawn down in two tranches:
(i) the first tranche of #700,000 will be drawn down on 24 April 2007; and
(ii) the second tranche, available at the sole discretion of Caspian and for
any sum up to the outstanding balance of the credit facility limit after
the first drawdown, will be drawn down within 6 months of the date
of the first drawdown. This second tranche is at this date uncommitted.
Participating investors have been granted 25 options over ordinary shares in the
Company for every #1.00 invested in the facility as a commitment fee The options
have an exercise price of 4 pence and expire on 31 December 2010.
The loan is a short term facility to fund working capital and new project
acquisition activities. It is intended that the facility is replaced with more
permanent finance in the future following either the extension of the Zengeldy
licence area and/or new project acquisition. The loan will be repaid in full on
the earlier of an equity raising or at maturity on 11 April 2009. Major
shareholders including Chairman Michael Masterman have shown their support for
the company in participating in the loan facility.
Export Quota
Caspian hopes to be able to restart exports in June following a temporary
interruption to export activities. The Company has made selected domestic sales
in the interim period from April 2007 and may continue to do so until exports
are resumed..
Quarterly Production Update
Production for the quarter ending 31 March 2007 was 12,000 barrels.
Related Party Transaction
Masterman Investments Limited ("MIL"), a company related to Michael Masterman, a
director of Caspian, and of which Michael Masterman is a director and sole
shareholder, is a lender participating in the Credit Facility to the amount of
#200,000 and will therefore receive 5,000,000 options as a commitment fee. The
loan by MIL is therefore classified as a related party transaction for the
purposes of the AIM Rules. Accordingly the Directors (other than Michael
Masterman), having consulted with Grant Thornton Corporate Finance (in its
capacity as the Company's nominated adviser), confirm that they are satisfied
that the terms of MIL's participation in the credit facility are fair and
reasonable insofar as the shareholders of the Company are concerned.
Following this transaction and the awarding of options, Michael Masterman will
be interested in 10,100,000 ordinary shares in the Company representing an
interest of 10.2 % in the total voting rights of the Company. In addition,
Michael Masterman is interested in 7,000,000 options over ordinary shares in the
Company as follows:
Stock Options Held Option Exercise Price Expiry Date
2,000,000 #0.23 4 November 2007
5,000,000 #0.04 31 December 2010
Enquiries:
Caspian Holdings Plc Grant Thornton Corporate Finance
Michael Masterman Gerald Beaney
T: +44 (0) 7791 288381 T: +44 (0) 20 7383 5100
Hoodless Brennan Parkgreen Communications
Luke Cairns Clare Irvine / Justine Howarth
T: +44 (0) 20 7538 1166 T: +44 (0) 20 7851 7480
www.caspianoil.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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