Xcite Energy seeks bondholder approval of asset sale and restructuring

By Caroline Salls

Pittsburgh, June 26 – Holders of Xcite Energy Resources Ltd.’s 12% senior secured callable bond issue 2014/2016 are being asked to approve a sale of the company’s assets to a new company formed by the bondholders, as well as a restructuring of the bonds, according to a notice released by bond trustee Nordic Trustee ASA.

Under the proposed sale, the new company will purchase the Xcite assets for $1, and all bond claims will be transferred to the new company.

In exchange for the transfer of their shares, the bondholders will receive ordinary shares in the new company equal to the principal amount of the bonds as of June 26.

Up to 1 million new shares will be issued by the new company, and bondholders will receive one new share for every $145.74 million principal amount of bonds held.

Bondholders who return a share issuance form by June 29 will receive its new shares upon completion of the restructuring. Unallocated new shares will be held in trust for unidentified shareholders who do not return their forms by the deadline. Unidentified shareholders who return their forms through June 30, 2023 will receive their shares from the trust at that time.

In addition, specified bondholders have agreed to provide a $10 million working capital facility to Excite Energy Resources plc following and conditional upon completion of the sale and restructuring.

The facility will be used to provide liquidity for general and administrative costs, allowing Excite Energy Resources plc to move forward with its strategy to find a partner to fund the development of and operate its Bentley field.

The facility will mature on June 30, 2019, and Excite Energy Resources plc will be required to redeem at par with interest all facility notes it does not hold.

Interest on the facility will accrue at 12%, payable in cash or in-kind.

Bondholder votes on the sale and restructuring must be received by the trustee by June 29.

Xcite Energy is an oil exploration and development company based in Tortola, Virgin Islands.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.