HOUSTON, Oct. 1, 2014 /PRNewswire/ -- Endeavour
International Corporation (NYSE: END) (LSE: ENDV) today announced
the closing of a $440 million senior
secured term loan (the "Credit Agreement") with an annual interest
rate of LIBOR plus 10% (with a LIBOR floor of 1%), that matures on
January 2, 2017. The proceeds of the
financing were used to repay the balance outstanding under the
Company's existing credit agreement, dated as of January 24, 2014, to repay in full certain
monetary production payments issued by the Company's wholly-owned
subsidiary, Endeavour Energy UK Limited ("EEUK"), to repay all
reimbursement obligations outstanding with respect to the Company's
existing LC Procurement Agreement, dated as of January 24, 2014, to provide cash collateral
under the terms of a new LC Issuance Agreement entered into by
certain subsidiaries of the Company (pursuant to which Credit
Suisse AG has agreed to issue letters of credit for EEUK's account
to secure decommissioning obligations in connection with certain of
its United Kingdom Continental Shelf Petroleum Production
Licenses), for payment of related expenses and to provide
additional liquidity to the Company.
The Company also announced that the Company and certain of its
subsidiaries have entered into forbearance agreements (the
"Forbearance Agreements") with holders of a majority of its 12%
First Priority Notes due 2018, 12% Second Priority Notes due 2018
and 6.5% Convertible Senior Notes due 2016 (collectively, the
"Notes"). As previously announced by the Company, the Company did
not make the September 2, 2014
interest payments due on the Notes, triggering a 30-day grace
period that ends on October 1,
2014. Because the interest payments are not being made during
the grace period, an event of default will occur under each series
of Notes. Under the terms of the Forbearance Agreements, the
noteholders have agreed to forbear from exercising remedies against
the Company arising from the interest payment defaults and, with
respect to the First Priority Notes and Second Priority Notes,
arising with respect to the Credit Agreement. The forbearance
period is scheduled to expire at 11:59pm on October 7,
2014.
The Company remains engaged in discussions with representatives
of certain holders of its various classes of indebtedness,
including the holders of Notes, regarding a debt restructuring plan
that would be affected by the Company pursuant to a chapter 11
filing. No assurances can be given, however, that such
discussions will result in an agreement for a debt restructuring
plan. Under the terms of the Credit Agreement, neither a
chapter 11 filing, nor the failure by the Company to pay the
interest due on the Notes, will result in an event of default
thereunder.
About Endeavour International Corporation
Endeavour International Corporation is an international oil
and gas exploration and production company focused on the
acquisition, exploration and development or energy reserves in the
North Sea and United States. For more information, visit
www.endeavourcorp.com.
Forward-looking Statements
This press release contains certain "forward-looking
statements," as such term is defined in Section 21E of the
Securities Exchange Act of 1934, as amended, relating to future
events and the financial performance of Endeavour. Such
statements are only predictions and involve risks and
uncertainties, resulting in the possibility that the actual events
or performance will differ materially from such predictions as a
result of certain risk factors. As such, readers are
cautioned not to place undue reliance on forward-looking
statements, which speak only as to management's plans, assumptions
and expectations as of the date hereof. Please refer to
Endeavour's Annual Report on Form 10-K for year ended December 31, 2013 filed with the SEC on
March 17, 2014, Form 10-K/A filed on
March 21, 2014 and other filings for
a discussion of material risk factors. Endeavour disclaims
any duty to update or alter any forward-looking statements, except
as required by applicable law.
SOURCE Endeavour International Corporation