Providence agrees €50m revolving credit facility
Exploration company Providence has agreed a €50m revolving credit facility with Macquarie Bank to fund the acquisition of new production and/or the development of both existing and new projects.
The facility will have an initial duration of 48 months.
Under the terms of the facility, €5m will be made available to fund general working capital and development. The balance will be made available to Providence, subject to the terms of the facility, to fund oil and gas acquisitions, investments and development opportunities.
As part of the agreement, the Company has agreed to grant Macquarie warrants to purchase new ordinary shares in Providence at a subscription price of €0.045 per share.
The number of warrants to be issued is linked to the funds available for drawdown under the facility, with an initial 35 million warrants to be granted in connection with the initial drawdown and a maximum of an aggregate 100 million warrants to be granted if the full €50m facility becomes available for drawdown.
