Long Term Financing Update (5507W)
February 01 2012 - 2:00AM
UK Regulatory
TIDMGED
RNS Number : 5507W
Global Energy Development PLC
01 February 2012
Immediate Release 1 February 2012
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company")
GLOBAL OBTAINS LONG TERM FINANCING
TO REDEEM EXISTING SHORT TERM CONVERTIBLE NOTES
AND TO ACCELERATE DEVELOPMENT ACTIVITIES
Global Energy Development PLC, the Latin America focused
petroleum exploitation, development and production company (AIM:
GED) with operations in Colombia and Peru, announces that on 31
January 2012 it closed a Fixed Rate Note Payable with HKN, Inc.
("HKN") for the principal amount of US$12 million (the "Note
Payable").
The Note Payable is not convertible into shares and allows for
the full principal amount to be available to the Company with
immediate effect. The Note Payable is subject to an interest charge
of 10.5% per annum, payable quarterly in arrears, with the
principal amount being repayable in full on 30 September 2013. The
Note Payable is currently unsecured, but HKN can require Global to
provide adequate collateral security in the event of a material
adverse effect. The Company will also pay to HKN a 1.75%
transaction fee of approximately $210,000. The Company intends to
redeem and extinguish the remaining $9.5 million principal amount
(and accrued interest) of its Variable Coupon Convertible Notes
prior to the current maturity date of December 2012 and to utilise
remaining funds to accelerate development activities at its
existing properties, primarily the Bocachico and Bolivar Contract
Areas within Colombia.
HKN and parties acting in concert with it are interested in
21,715,266 Global shares, representing approximately 60.67 per
cent. of the issued share capital of Global. By virtue of these
holdings, the Note Payable constitutes a related party transaction
under the AIM Rules. With the exception of Mr. Mikel Faulkner, who
is a director of HKN, the Company's Directors consider, having
consulted with Northland Capital Partners Limited, the Company's
Nominated Adviser, that the terms of the transaction are fair and
reasonable insofar as the Company's shareholders are concerned.
For further information please contact
Global Energy Development PLC
Anna Williams, Director of Business
Development +001 817 310 0240
awilliams@globalenergyplc.com
www.globalenergyplc.com
Buchanan (Financial PR)
Tim Thompson +44 (0)20 7466 5000
Ben Romney
Helen Chan
Northland Capital Partners Limited
+44 (0)20 7796
Louis Castro 8800
Lauren Kettle
This information is provided by RNS
The company news service from the London Stock Exchange
END
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