Dome Energy AB signs commitment letter for refinancing its debt
Dome Energy AB. (herein after “Dome” and/or “the Company”) has signed a commitment letter with its current bank Mutual of Omaha Bank (MoO) to refinance its current facility with Société Générale (SG). MoO has agreed to buy out SG of the current facility with a write down from approximately MUSD 41 to MUSD 22.5 if conditions are met. Dome has agreed with MoO’s conditions and is aiming to close the facility later this year. Dome intends to call for a shareholders’ assembly to present the terms and conditions and to seek permission to approve the conditions in the contract.
Dome intends to start a development program which needs financing of a total of MUSD 5-6. The company is planning on raising this capital through debt or equity offering in Europe. MoO has agreed to provide a short term bridge financing so that the development program can start immediately. A group of larger shareholders has committed to support any suggestion that might get approved at the assembly, which preliminary will be held in November.
Paul Morch, CEO: ”We have finally been able to reach a refinancing of Dome Energy Inc. To be able to basically cut our debt in half and at the same time keep a bank financing is a remarkable achievement. Mutual of Omaha Bank has been able to see our potential and decided to believe in us as a company. They have given us loan covenants that allows us to get back on track with our development and growth. With OPEC agreeing to intervene with current oil markets, we believe in a much stronger oil price moving forward. We still have the same assets that were valued above MUSD 150 in 2014, and we hope to show that this value can be brought back soon.”
For further information, please contact:
Paul Morch, CEO
Tel: +1 713 385 4104
This information is the kind of information that Dome Energy AB (publ) is obliged to publicize according to EU Market Abuse Regulations (MAR). The information was publicized, by the above contact person on October 7, 2016, 08:30 CET.
About Dome Energy
Dome Energy AB. is an independent Oil & Gas Company publicly traded on the Nasdaq First North exchange in Sweden (Ticker: DOME). Mangold Fondkommission AB, phone: +46 8 503 01 550, is the Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production of existing onshore Oil & Gas reserves in the United States. For more information visit www.domeenergy.com.