Xcite Energy issues unsecured loan notes

Oil and gas producer Xcite Energy has closed on the issue of 10m dollars worth of unsecured loan notes to a fund managed by West Face Capital.

The notes have an initial term of 236 days and may, subject to West Face's approval, be extended by Excite for a further 360 days. They have an interest of 14% per annum, which is payable in arrears on four pre-agreed dates in each relavent year.

West Face is entitled to receive a maintenance fee equal to 1.0% of the outstanding amount of the notes 180 days from issue date and at maturity. The company has paid $0.2m to a third party in connection with the initiation of the transaction.

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Excite can repay the loan notes any time after August 14th of this year, either in full or in part if it equals at least 10% of the outstanding amount,

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The funds will be used to provide contingency funding during the important Phase 1A work programme on the Bentley field.

The share price rose 1.3% to 78p by 08:47.

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