Following the Company’s announcement on 13 October 2016 of the completion of the Restructuring (as such term is defined therein), US$100.0 million aggregate principal amount of guaranteed loan notes were issued by the Company (“Guaranteed Notes”) following the partial equitisation of the US$250 million guaranteed notes due 2017. The Guaranteed Notes are guaranteed by the Company’s wholly owned subsidiary, Gulf Keystone Petroleum International Limited and were issued on the same terms as the previous US$250 million guaranteed notes due 2017, subject to the following amendments:
Maturity: 18 October 2021. At any time prior to maturity, the Guaranteed Notes are redeemable at par and can therefore be refinanced without any prepayment penalty;
Interest: from the date of issuance to 18 October 2018, the Company will have the option to pay interest either (a) on a PIK basis at 13% or (b) in cash at 10%. From 19 October 2018 onwards, interest will be payable in cash at 10%;
Additional debt basket: the Company is permitted to incur up to US$25 million of additional indebtedness at any time on market terms to fund capital expenditure and operating expenses. This additional indebtedness may be incurred as: (i) a issuance of additional Guaranteed Notes pursuant to the trust deed constituting, and having the same terms and conditions as, the Guaranteed Notes; or (ii) super senior credit facility indebtedness ranking ahead of the Guaranteed Notes.
Certain other amendments including, inter alia, the removal of security (such that the Guaranteed Notes are unsecured), the removal of the debt service reserve account and the extension of the grace periods in respect of certain events of default under the Guaranteed Notes.
Terms & Conditions