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Reinstated Notes

On 14 October 2016, the Company successfully completed the balance sheet restructuring. Following the partial equitisation of the US$250 million guaranteed notes due 2017 (“Guaranteed Notes”), the Company issued US$100 million aggregate principal amount of new guaranteed notes (“Reinstated Notes”). The unsecured Reinstated Notes are guaranteed by the Company’s wholly owned subsidiary, Gulf Keystone Petroleum International Limited and were issued on the same terms and conditions as the Guaranteed Notes, subject to the following amendments: 

• Maturity date is 18 October 2021. At any time prior to maturity, the Reinstated Notes are redeemable in part or full at par and can therefore be refinanced without any prepayment penalty;

• The Company will have the option to defer its interest payments until the maturity of the Reinstated Notes in PIK at 13% or pay in cash at 10% until 18 October 2018. From 19 October 2018, the Company is mandatorily liable to pay interest in cash at 10%;

• The aggregate principal amount of the Reinstated Notes shall be increased by the amount of such PIK interest on the date such interest is due and interest will accrue on the increased principal amount from such date;

• The Company will be permitted to raise up to US$45 million of additional indebtedness at any time on market terms to fund capital and operating expenditure; and

• Certain other amendments, including inter alia, the removal of security, removal of the Debt Service Reserve Account requirement and the extension of the grace periods in respect of certain events of default under the Reinstated Notes.

Guaranteed Notes Terms and Conditions