Global Energy Development PLC RESTRUCTURING OF NOTES PAYABLE (7534Z)
March 12 2013 - 3:00AM
UK Regulatory
TIDMGED
RNS Number : 7534Z
Global Energy Development PLC
12 March 2013
For Immediate Release 12 March 2013
GLOBAL ENERGY DEVELOPMENT PLC
(the "Company")
RESTRUCTURING OF NOTES PAYABLE
Global Energy Development PLC, the Latin America focused
petroleum exploitation, developmentand production company (AIM:
GED) with operations in Colombia announces that on 11 March2013 it
restructured itsexisting current debt obligations, the Senior
Secured Note Payable for the principal amount of US$5 million and
the Fixed Rate Note Payable for the principal amount of US$12
million, respectively, with HKN, Inc. ("HKN") into one new
amortising Note Payable ("Note Payable") in the principal amount of
US$17 million. The new Note Payable is not convertible into shares
and is subject to an interest charge of 12.75 per cent per annum,
payable quarterly in arrears. The first principal payment of
US$500,000 is due on 31 March 2013 with payments of US$1.5 million
due quarterly beginning 30 June 2013 through 31 March 2015. The
final principal payment of US$4.5 million is due and payable on 15
June 2015. The interest rate will increase to 13.50% in the event
that any of GED's semi-annual earnings report reflects either lower
profit from operations or cash flow from operations than was
reported in the comparable prior year report. The Note Payable is
unsecured, but HKN can require the Company to provide adequate
collateral security in certain events.
In exchange for this restructuring, the Company paid to HKN a
one-time 2% arrangement fee of $340,000.
HKN and parties acting in concert with it are interested in
22,003,616 Global shares, representing approximately 60.93 per
cent. of the issued share capital of Global. By virtue of these
holdings, the amendment to 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, Finance Director +001 817 310 0240
awilliams@globalenergyplc.com
www.globalenergyplc.com
Buchanan (Financial PR)
Tim Thompson +44 (0)20 7466 5000
Ben Romney
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
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