OSLO, 24 June 2021 – Lime Petroleum AS (“Lime Petroleum”) has successfully raised a 2.5-year senior secured bond of NOK 500 million(approximately US$60 million) (the “Bonds”). The issuance of the Bonds is a condition precedent for Lime Petroleum’s acquisition of the Brage Field in Norway.
The settlement date of the Bonds is expected to be 9 July 2021, with maturity date on 9 January 2024. The coupon rate will be 3 months NIBOR* plus 8.25 per cent. The Bonds are targeted to be listed on the Oslo Børs within 6 months. In the unlikely event the listing does not proceed, or the Bonds do not maintain such a listing, the coupon rate shall be increased by 1 percent.
Mr Lars Hubert, Chief Executive Officer of Lime Petroleum, said, “We are very pleased with the strong interest and take-up rate of the Bonds, a testament to the quality of the Brage Field. The completion of the bond issue is another step that will pave the way for Lime Petroleum to transition from pure play exploration, to a full cycle exploration and production company on the Norwegian Continental Shelf. We look forward to completing the Brage Acquisition, establishing recurring cash flow, as well as developing and driving further value in our portfolio going forward.”
The manager of the bond issue is financial adviser ABG Sundal Collier ASA.
Lime Petroleum had on 15 June 2021, entered into a conditional sale and purchase agreement to acquire 33.8434 per cent interests in the oil, gas and natural gas liquids (NGL)producing Brage Field, and the five licences on the Norwegian Continental Shelf over which the Brage field straddles, for a post-tax consideration of US$42.6 million.
Placement of the bond is possible due to the Brage Field’s production profile, cash flow generation and quality in the security package of the bond provided. The bond is secured with, inter alia,a pledge over Rex International Investments Pte. Ltd.’s shareholding interests in Lime Petroleum, security with first priority over interests in future hydrocarbon assets which Lime Petroleum and/or its subsidiaries may acquire in future, tax balances held by Lime Petroleum today and deferred tax assets related to the Brage Field upon completion of the Acquisition. Lime Petroleum’s deferred tax assets and tax refund receivables will total NOK644 million (approximately US$77 million) as at 1 January 2021 (“Tax Assets”), upon completion of the Acquisition. In the event of a default on the bond, any remaining Tax Assets are backed by the Norwegian Government and can be used by bond holders to partially recoup any shortfall in the bond issue.