Range Resources Limited US$20 Million Convertible Note Financing (8047N)
31 October 2016 - 6:00PM
UK Regulatory
TIDMRRL
RNS Number : 8047N
Range Resources Limited
30 October 2016
US$20 Million Convertible Note Financing
Range is pleased to announce it has signed an agreement with
LandOcean Energy Services Co., Ltd. ("LandOcean") for the issuance
of a US$20 million convertible note by Range (the "Agreement").
The key terms of the convertible note are as follows:
Issuer: Range Resources Limited
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Noteholder: LandOcean Energy Services Co., Ltd
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Amount: US$20,000,000
------------------ -----------------------------------
Tenor: 3 years
------------------ -----------------------------------
Repayment: Bullet at maturity date
------------------ -----------------------------------
Interest: 8% per annum, payable annually in
arrears
------------------ -----------------------------------
Security: None
------------------ -----------------------------------
Conversion Price: 0.88p per share
------------------ -----------------------------------
Lender Conversion At any time, in a minimum amount
Right: of US$10 million
------------------ -----------------------------------
The proceeds from this convertible note will be utilised solely
to replace a portion of the outstanding payable balance due to
LandOcean under the terms of the Integrated Master Services
Agreement ("IMSA").
The conversion price is at a significant, 130% premium to the
closing price as at 28 October of 0.38p. At today's exchange rate,
if LandOcean were to convert the full amount of the convertible
loan, they would hold an interest of approximately 19.9% in the
enlarged share capital. LandOcean will have the right to appoint
one Director to the Board of Range at any time when the value of
the outstanding note and any conversion shares held exceeds US$10
million, and have the right to appoint one further additional
Director when the value is a minimum of US$20 million.
In addition to the convertible note, LandOcean will continue to
provide the Company with financing for work undertaken in Trinidad
under the IMSA on the same terms currently offered (principally
with a 2 year repayment term from date of invoicing and 10% annual
interest charge).
The Agreement is conditional upon receipt of shareholder
approval from both LandOcean and Range. The Company will convene a
general meeting of shareholders to consider the transaction and
currently anticipates this will take place during December
2016.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
Contact details
Cantor Fitzgerald Europe
Range Resources Limited (Nominated Advisor and
Evgenia Bezruchko (Group Corporate Broker)
Development Manager) David Porter / Sarah Wharry
e. admin@rangeresources.co.uk (Corporate Finance)
t. +44 (0)20 7520 9486 David Banks (Corporate
Broking)
t. +44 (0)20 7894 7000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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