Lucas Energy, Inc. has entered into an agreement to refinance and restructure its outstanding long-term loan. The existing loan has an outstanding balance of $7.3 million, carries an annual interest rate of 12%, and requires amortizing principal payments from March 2014 to maturity in August 2015.

Under the amended agreement, Lucas will defer amortizing principal payments during the six-month period from April through September 2014, and interest will accrue at an annual rate of 15% during such deferral period. Beginning in October 2014, the interest rate will return to 12% per annum and Lucas will pay the monthly amortization amount in accordance with the original schedule and will pay an additional principal payment of approximately $266,000 per quarter until maturity.

Tags: Lucas Energy