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Range Resources to complete US$15M financing with amended terms

Last updated: 23:40 19 Oct 2014 BST, First published: 22:40 19 Oct 2014 BST

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Range Resources (ASX:RRS, LON:RRL) today completes its US$15mln financing, revealed last month, though there have been last minute changes to the terms.

The AIM oil firm has revealed that it will now be able to repay the loan at any time.

Another change sees the initial draw-down cut in half with US$5mln released on closing and the other US$5mln released in 10 monthly instalments. The third US$5mln portion of the financing will also now be available on a monthly basis, beginning in April.

The amendments come after a drop of more than 50% for the Range share price since the financing was announced, which came at the same time as the oil company lifted the lid on operational issues in Trinidad that caused production to miss targets.

Money secured via the financing will be invested to enhance operations and get production back on track.

Other changes to the loan terms include the issue of 32mln collateral shares upon completion rather than two separate portions which would’ve coincided with the two previously envisaged upfront tranches.

There were also amendments to terms for the conversion of the debt into equity.

In early deals on AIM Range shares advanced 7% to trade at 0.77p.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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