Benz Closes On $30 Million of Long-Term Debt and $4 Million of Redeemable Preferred Stock.HOUSTON--(BUSINESS WIRE)--Aug. 24, 1999-- Benz Energy Inc. (VSE See DOS/VSE. VSE - Virtual Storage Extended :BZG BZG Bristol Zoo Gardens (UK) ) today announces that it has closed a new long-term production financing facility with Aquila Energy Capital Corporation in the initial amount of $26,200,000. The facility may be extended by up to $1.5 million based on results of well stimulation work in the Fortenberry well. The proceeds were used to retire existing senior secured debt and accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . In addition, the Company has a firm commitment from Aquila for an additional $3.8 million of funding for development drilling at its Oakvale Dome Field. The new production financing is secured by the Company's proven oil and gas properties and is repaid through a dedicated portion of the property income. Terms of the financing include a 12% interest rate and assignment of 1/16th of the Company's interests in the proven properties following full repayment of the new production financing. The Company also closed a private placement of $4 million in new equity through the issuance of $4.4 million of redeemable Class A Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , Series I to two investor groups. Robert S. Herlin, Senior Vice President and CFO See Chief Financial Officer. , commented, "The production financing and equity placement are the second and third major components of our financial restructuring that will allow the Company to take full advantage of its potential at Oakvale Dome and continue the Old Ocean project in Texas. We are most pleased to gain Aquila Energy Capital as our new financial partner." Benz Energy Inc. is an exploration and development oil and gas company based in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the focused on natural gas in the onshore U.S. Gulf Coast region of Mississippi, Texas and Louisiana. Cautionary Statement as to Forward-Looking Information Investors are cautioned that the preceding statements of the Company include certain estimates, assumptions and other forward-looking information ("forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (information)"). The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements (information), which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including rates of inflation, natural gas prices, reserve estimates, drilling risks, future production of oil and gas, changes in future costs and expenses related to oil and gas activities and hedging, financing availability and other risks related to financial activities. The Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. |
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