leadf
logo-loader
viewTouchstone Exploration Inc

Touchstone Exploration agrees seven-year US$20mln loan with Trinidad bank

"We are pleased to be able to source local financing from Republic Bank, the largest lender in Trinidad and the Caribbean,” said CFO Scott Budau

Touchstone Exploration Inc - Touchstone Exploration agrees seven-year US$20mln loan

Touchstone Exploration Inc (LON:TXP) (TSE:TXP) told investors it has entered into escrow for a US$20mln seven-year loan with Trinidad and Tobago’s Republic Bank Limited.

The loan will carry interest of 7.85%, payable quarterly in arrears, and is secured against the company’s assets and subsidiaries.

READ: Touchstone inks agreement for Ortoire gas sales

"We are pleased to be able to source local financing from Republic Bank, the largest lender in Trinidad and the Caribbean,” said Scott Budau, Touchstone chief financial officer in a statement.

“The financial flexibility of the new facility will us allow to confidently proceed with our Ortoire exploration activities. In addition, the interest payable on the loan is expected to be tax-deductible in Trinidad, equating to an after-tax cost of capital of 3.5%. We would also like to give our sincere thanks to Crown Capital, which has supported us since 2012," he added.

The company noted that it continues to operate under an existing C$20mln credit facility, which includes a production payment to the lender (equal to 1.33% of petroleum sales) through to October 2021.

Meanwhile, it has agreed it will continue the obligation under the previous terms and conditions. The company added that the total payout of the existing credit facility will include the C$20mln principal balance, all accrued interest thereon, and a 1.0% prepayment fee.

Quick facts: Touchstone Exploration Inc

Price: 100 GBX

AIM:TXP
Market: AIM
Market Cap: £184.16 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Touchstone Exploration Inc named herein, including the promotion by the Company of Touchstone Exploration Inc in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Touchstone Exploration presents at the One2One Proactive virtual conference

Touchstone Exploration's (LON:TXP) Paul Baay pitches to investors at the Proactive One2One virtual conference. Touchstone Exploration Inc. is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. It is one of the largest...

4 days, 4 hours ago

2 min read