Touchstone Exploration Inc (LON:TXP) has provided updates on its bank debt and drilling operations.
Bank Debt
Touchstone’s wholly owned Trinidadian subsidiary, Touchstone Exploration (Trinidad) Ltd., has entered into a binding term sheet with our existing Trinidad-based lender providing for an increase in borrowing capacity of $13 million. The parties are currently documenting an amended and restated bank loan agreement and related security registrations, following which the additional credit capacity will become effective.
The principal changes included in the Amended Bank Loan are as follows:
· a new $10 million five-year non-revolving term loan facility, with no principal repayment in the first year and sixteen equal and consecutive quarterly payments thereafter; and
· an increase in our current revolving loan facility borrowing capacity from $7 million to $10 million, which will mature two years from the execution date and may be renewed at the option of the parties thereafter.
