LNG Energy Ltd. : LNG Energy Announces Credit Facility For Its Wholly-Owned Subsidiary
02/27/2012| 07:07pm US/Eastern
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LNG Energy Ltd. ("LNG") (TSX Venture: LNG) is
pleased to announce that its wholly-owned subsidiary, Kaynes
Capital S.a.r.l. ("Kaynes"), has closed on secured
credit facilities (the "Credit Facility") with
undisclosed third parties (the "Lenders").
Kaynes received the full drawdown of $5 million (the
"Loan") on February 27, 2012. The funds drawn under
the Credit Facility are secured against all of the assets of
Kaynes. Funds drawn under the Credit Facility are repayable on
or before February 27, 2013 and accrue interest at a fixed rate
of 7% per annum.
Pursuant to the terms of the Credit Facility, in the event that
Kaynes disposes of certain prescribed assets prior to February
27, 2016, Kaynes will be required to pay the Lenders, in
aggregate, a contingent bonus in an amount equal to 12.5% of
the proceeds arising from the disposition of such assets and
payable to the Lenders
pro rata in relation to their
respective contributions to the Loan.
Funds borrowed under the Credit Facility are expected to be
used for the advancement of the capital work program of its oil
and gas assets for Kaynes or its affiliates as well as for
general working capital purposes.
LNG ENERGY LTD.
Per:
"Dave Afseth"
President & CEO
For further information please contact:
Investor relations: 1-778-373-0103
Email:
info@lngenergyltd.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in
applicable Canadian securities laws, including with respect to
the use of proceeds of the Credit Facility. Forward-looking
information is based on plans and estimates of management at
the date the information is provided and certain factors and
assumptions of management. Forward looking information is
subject to a variety of risks and uncertainties and other
factors that could cause plans, estimates and actual results to
vary materially from those projected in such forward-looking
information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate
include, but are not limited to, the risks related to
unsatisfactory results of due diligence, international
operations and doing business in foreign jurisdictions, risks
associated with the oil and gas industry and exploratory and
development activities generally (e.g., operational risks in
development, exploration and production, delays or changes in
plans with respect to exploration or development projects or
capital expenditures, risks associated with equipment
procurement and equipment failure), the risk of commodity price
and foreign exchange rate fluctuations, risks related to future
royalty rate changes, and risks and uncertainties associated
with securing and maintaining necessary regulatory approvals,
and counterparty risk related to the stability and viability of
LNG's joint venture participants.
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