Curated News
By: NewsRamp Editorial Staff
March 27, 2024
i3 Energy CEO Discusses Positive Refinancing and Growth Plans
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- i3 Energy PLC secures C$75 million RBL facility, reducing interest costs and freeing up $25 million Canadian annually for reinvestment, providing a significant financial advantage.
- The RBL facility is secured against Canadian reserves and assets, offering a slightly better interest rate, with an option to index the rate to the Canadian prime rate.
- The refinancing allows i3 Energy to reinvest $25 million Canadian annually into the business, enhancing liquidity for growth initiatives and potential mergers and acquisitions, contributing to future sustainability.
- i3 Energy's 2023 reserves update reveals stable reserves despite production, with 93 million barrels 1P and 180 million barrels 2P, highlighting the quality of its assets and efficient management.
Impact - Why it Matters
The positive refinancing of i3 Energy PLC has significant implications for the company's growth and investment plans, with $25 million Canadian annually now available for reinvestment in the business. The strategic partnership with a Canadian bank also provides flexibility and options for the company's growth strategy, potentially leading to lower capital costs and access to development capital for organic growth and mergers and acquisitions.
Summary
i3 Energy PLC chief executive Majid Shafiq discusses the company's positive refinancing, which has freed up $25 million Canadian annually for reinvestment in the business. The company has entered into a reserve-based lending (RBL) facility, secured against its Canadian reserves and assets, totaling C$75 million. The new arrangement offers a better interest rate and effectively halves the company's current interest costs.
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, i3 Energy CEO Discusses Positive Refinancing and Growth Plans
