REG - San Leon Energy PLC - Update in relation to the loan

San Leon EnergyAnnouncement

09/10/2023 07:15

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RNS Number : 0511P  San Leon Energy PLC  09 October 2023

 

 

 

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information for the purposes of
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
With the publication of this announcement, this information is now considered
to be in the public domain.

 

9 October 2023

San Leon Energy plc

("San Leon" or the "Company")

 

Update in relation to the loan from the Company's largest shareholder

 

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, announces an update on the Company's secured
US$5.0 million loan (the "Loan") from funds managed by Toscafund Asset
Management LLP ("Toscafund").

 

On 8 August 2023, the Company announced, amongst other matters, that it had
entered into the Loan with the Company's largest shareholder, being certain
funds managed by Toscafund. The Loan carries a coupon of 10 per cent. per
annum.  The Loan was originally repayable by no later than 7 September
2023.  On 2 October 2023 the Loan repayment date was subsequently extended to
6 October 2023. As part of the Loan, San Leon entered into security
arrangements with the funds managed by Toscafund that comprise both a
debenture issued by the Company as well as assignments and pledges over all of
its group companies' loan and equity interests in ELI (the "Security").  The
Security will be released upon full repayment of the Loan.

 

San Leon's discussions with a third party in relation to securing an
alternative loan facility (as mentioned in previous announcements) are now at
a very advanced stage and, in order to enable them to conclude, Toscafund has
provided the Company with a redemption and release letter which sets out,
inter alia, the arrangements for the release of the Security. Specifically,
the redemption and release letter includes a standstill provision by which
Toscafund have agreed not to make any demand for repayment of the Loan or
enforce the Security before 13 October 2023. All other terms of the Loan
remain unchanged. The board of San Leon (the "Board") believes that a
conclusion on an alternative loan facility will be reached in the very near
term and will provide an update to shareholders and creditors at that time.

 

Enquiries:

 

 San Leon Energy plc                                   +353 1291 6292
 Oisin Fanning, Chief Executive

 Julian Tedder, Chief Financial Officer
 Allenby Capital Limited                               +44 20 3328 5656

 (Nominated adviser and joint broker to the Company)
 Nick Naylor

 Alex Brearley

 Vivek Bhardwaj
 Panmure Gordon & Co                                   +44 20 7886 2500

 (Joint broker to the Company)
 James Sinclair-Ford

 John Prior
 Tavistock                                             +44 20 7920 3150

 (Financial Public Relations)
 Nick Elwes

 Simon Hudson
 Plunkett Public Relations                             +353 1 230 3781
 Sharon Plunkett

 

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