Touchstone Exploration Inc. (LON:TXP) has announced that Touchstone Exploration (Trinidad) Ltd., our wholly owned Trinidadian subsidiary, has entered into a second amended and restated loan agreement with our Trinidad based lender providing for an additional US$7 million revolving loan.
The Amended Loan Agreement provides for a US$7 million revolving loan facility in addition to the existing term facility. The existing term facility component of the Amended Loan Agreement currently has a principal balance of US$25.5 million, with seventeen equal and consecutive quarterly principal payments of US$1.5 million outstanding and a maturity date of June 15, 2027. Republic Bank Limited is continuing to act as the sole lender, arranger and facility agent of the Amended Loan Agreement.
Touchstone intends to use the revolving loan proceeds to maintain financial flexibility while we proceed with Royston-1X production testing operations and Cascadura facility construction where we continue to target for first production on or around June 30, 2023.
Aside from adding the revolving loan component, the Amended Loan Agreement did not alter any material terms of the Company’s first amended and restated loan agreement effective December 20, 2021. The revolving component of the Amended Loan Agreement has the following terms and conditions, with no additional financial or affirmative and negative covenants other than as provided under the first amended and restated loan agreement between the parties.
| Borrower: | Touchstone Exploration (Trinidad) Ltd. |
| Additional facility type: | Revolving loan |
| Amount: | US$7,000,000 |
| Term: | One year, with the option to extend annually by additional periods of up to one year |
| Interest rate: | Fixed on drawdown date, based on the one year term Secured Overnight Financing Rate (SOFR) plus an applicable margin per annum, reset annually |
| Interest payments: | Payable monthly in arrears |
| Repayment: | Principal may be repaid at any time, on or before the maturity date without penalty and any amounts repaid may be redrawn at any time |
| Collateral: | Increase of existing senior mortgage debenture over the fixed and floating assets of the Borrower and its subsidiaries |
