AJ Lucas Loan Note Facility ExtensionAJ Lucas was up by more than 10%, a day after confirming that it has reached an agreement that paves the way for it to amend terms associated with its Loan Note facility. OCP Asia, the debt provider, has agreed to defer the pay-down requirement of a $20 million loan facility to October 25, 2019, from September 30, 2019.
The extension opens the door for the company to continue negotiations with a select group of new lenders about the possibility of refinancing the existing Loan Note facility. Negotiations are currently at an advanced stage. AJ Luca is relying on a new deal to help get rid of the current loan facility with a much cheaper debt package over the next three years.
AJ Lucas recently reported financial results for the year ended June 30, 2019, whereby statutory EBITDA profit was down to $9.1 million from $21 million reported a year earlier. The decline stems from an increase in costs associated with drilling and fracturing by Cuadrilla Resources Holdings in the UK.
“Our investment in UK Shale Gas exploration saw some positive results with a flow test of the first well at Preston New Road yielding high quality dry natural gas and indications of extrapolated stable flow under operating conditions,” SAID Chairman Phil Arnall.
