Endeavour International Corporation Announces Closing of $440 Million Senior
Secured First Lien Term Loan and Forbearance Agreement with Noteholders
HOUSTON, Oct. 1, 2014 -- 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.
CONTACT: Endeavour - Investor Relations, Darcey Matthews, +1-713-307-8711