REG - i3 Energy PLC - Settlement of Loan Notes and New Loan Facility

I3 EnergyAnnouncement

31/05/2023 09:15

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RNS Number : 1644B  i3 Energy PLC  31 May 2023

31 May 2023

i3 Energy plc

("i3", "i3 Energy", or the "Company")

Settlement of Outstanding Loan Notes and Establishment of New CAD100 Million
Loan Facility

 

i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with
assets and operations in the UK and Canada, is pleased to announce the
successful settlement of the Company's outstanding £22 million Senior Secured
Guaranteed Loan Notes (the "Loan Notes"), due May 31(st), 2023, and the
establishment of a CAD100 million  loan facility, which will provide i3
greater financial flexibility and enhanced credit capacity to further execute
its ongoing business plan.

The Company and i3 Energy Canada Ltd. have signed agreements with Trafigura
Canada Ltd., a subsidiary of Trafigura Pte Ltd., a market leader in the global
commodities industry, for a CAD100 million loan facility (the "Facility") and
an associated commercial contract related to i3 Energy Canada Ltd.'s oil
production. The Facility has a three-year term, with interest payable monthly
at 9.521% per annum, calculated on the outstanding portion of the loan. The
Facility carries no penalty if repaid early and amortises monthly on a
straight-line basis, which aligns with the Company's conservative approach to
debt management. Advances under the Facility can be repaid either with cash or
by way of set-off against deliveries of crude oil under the commercial
contract which has a minimum term of three years. The documentation
establishing the Facility includes the option for a CAD75 million advance
which has been fully drawn by the Company and a CAD25 million accordion
facility amount, which can be made available during the Facility's three-year
term. The Facility is secured by a first lien against substantially all the
assets and shares of i3 Energy Canada Ltd., permitting maximum financing
flexibility for the rest of the Company's international portfolio. The Company
will utilize a portion of proceeds from the initial advance to redeem the
outstanding Loan Notes. The balance of the proceeds will be available for
general corporate purposes of the Company and of i3 Energy Canada Ltd.,
including working capital requirements, acceleration of organic growth (from
i3's proven portfolio of development drilling locations) and to fund accretive
acquisition opportunities.

Carlingford, a division of GFI Securities Limited, acted as financial advisor
and Norton Rose Fulbright Canada LLP and Burness Paull LLP acted as legal
counsel to i3 in relation to the refinancing.

Majid Shafiq, CEO of i3 Energy plc, commented:

"i3 Energy is very pleased to have refinanced its outstanding debt with an
expanded debt facility. In volatile capital market conditions, we have managed
to improve our access to liquidity with a flexible and scalable debt facility
and established a relationship with a very sophisticated oil and gas investor.
It is a very positive validation of our business model and asset portfolio,
and we look forward to a mutually beneficial relationship with Trafigura as
both companies continue to expand their operations in Canada".

 

Iain Singer, Head of Trafigura Canada, commented:

"Trafigura's business in Canada has grown materially in the last few years.
One of our objectives is to continue to think locally while leveraging off our
global platform. We continue to expand our support to a select number of
companies in the oil and gas upstream sector, in Canada and across the world.
We are pleased to execute this commercial agreement with i3 Energy and look
forward to working together to grow our business relationship over the coming
years."

 

Enquiries:

 

 i3 Energy plc                                   c/o Camarco

 Majid Shafiq (CEO)                              Tel: +44 (0) 203 781 8331

 WH Ireland Limited (Nomad and Joint Broker)

 James Joyce, Darshan Patel                      Tel: +44 (0) 207 220 1666

 Tennyson Securities (Joint Broker)

 Peter Krens                                     Tel: +44 (0) 207 186 9030

 Stifel Nicolaus Europe Limited (Joint Broker)

 Ashton Clanfield, Callum Stewart                Tel: +44 (0) 20 7710 7600

 Camarco

 Georgia Edmonds, Violet Wilson, Sam Morris      Tel: +44 (0) 203 781 8331

 

Notes to Editors:

i3 Energy is an oil and gas Company with a low cost, diversified, growing
production base in Canada's most prolific hydrocarbon region, the Western
Canadian Sedimentary Basin and appraisal assets in the North Sea with
significant upside.

The Company is well positioned to deliver future growth through the
optimisation of its existing 100% owned asset base and the acquisition of long
life, low decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and
places high value on adhering to strong Environmental, Social and Governance
("ESG") practices. i3 is proud of its performance to date as a responsible
steward of the environment, people, and capital management. The Company is
committed to maintaining an ESG strategy, which has broader implications for
long-term value creation, as these benefits extend beyond regulatory
requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange under the
symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For
further information on i3 Energy please visit  https://i3.energy/
(https://i3.energy/) .

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR").  Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

 

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