VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2012) - LNG Energy Ltd. ("LNG") (TSX VENTURE:LNG) is pleased to announce that its wholly-owned subsidiary, Kaynes Capital S.a.r.l. ("Kaynes"), has closed on secured credit facilities (the "Credit Facility") with undisclosed third parties (the "Lenders").
Kaynes received the full drawdown of $5 million (the "Loan") on February 27, 2012. The funds drawn under the Credit Facility are secured against all of the assets of Kaynes. Funds drawn under the Credit Facility are repayable on or before February 27, 2013 and accrue interest at a fixed rate of 7% per annum.
Pursuant to the terms of the Credit Facility, in the event that Kaynes disposes of certain prescribed assets prior to February 27, 2016, Kaynes will be required to pay the Lenders, in aggregate, a contingent bonus in an amount equal to 12.5% of the proceeds arising from the disposition of such assets and payable to the Lenders pro rata in relation to their respective contributions to the Loan.
Funds borrowed under the Credit Facility are expected to be used for the advancement of the capital work program of its oil and gas assets for Kaynes or its affiliates as well as for general working capital purposes.
LNG ENERGY LTD.
Dave Afseth, President & CEO
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including with respect to the use of proceeds of the Credit Facility. Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management. Forward looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risks related to unsatisfactory results of due diligence, international operations and doing business in foreign jurisdictions, risks associated with the oil and gas industry and exploratory and development activities generally (e.g., operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, risks associated with equipment procurement and equipment failure), the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes, and risks and uncertainties associated with securing and maintaining necessary regulatory approvals, and counterparty risk related to the stability and viability of LNG's joint venture participants.
Shares Outstanding: 338,719,365
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Investor Relations
1-778-373-0103
info@lngenergyltd.com
www.lngenergyltd.com