Rooster Energy Ltd. says that effective October 11, 2013, it entered into a secured Credit Facility which provides for borrowing up to CDN $8 Million, to be used for general corporate purposes. The initial advance under the Credit Facility is CDN $4 Million (less a 2% original issue discount). The Credit Facility is fully subordinated to an existing secured term loan in the principal amount of US $22.5 million that Rooster entered into as of October 22, 2012 and which matures on October 22, 2014.
The interest rate is 9% on all advances under the Credit Facility and the maturity date is 180 days after the full satisfaction of the terms of the existing $22.5 million loan. The Credit Facility is secured only by certain oil and gas properties owned by Probe Resources US Ltd., a wholly owned subsidiary of Rooster, and Rooster is the guarantor of any indebtedness owed under the Credit Facility.