SINGAPORE - Catalist-listed alpha Energy is restructuring a loan it took from ING Capital in 2015 to fund the 95 per cent of tax credits available to working interest owners of the Mustang field.
As at June 7, the company, along with other loan parties - TP North Slope Development (TPNSD) as borrower and BRPC as operator, owes ING Capital a loan balance of US$13.3 million ($18.2 million).
This is with the completion of the Mustang projection transactions and the loan balance owed being consolidated into the group's financials.
Under the latest agreement, Alpha Energy and TPNSD will make repayments to ING in quarterly instalments of US$600,000 starting June 15, 2020.
Default interest accrued under the loan facility since Jan 1, 2017 will be discharged and is no longer outstanding provided no default has occurred or continues.
With the debt restructure, the ING loan will revert to a non-default status and have a reduced interest rate applied on the loan moving forward. It also discharges the group's liability for default interest accumulated from Jan 1, 2017, provided no default has occurred or continues.
The debt restructure also reduces the net current liabilities position of the group, and better aligns payments to the receipt of tax credits from the State of Alaska and production proceeds.
This is the second time the loan parties restructured the loan facility, the last being via a term sheet entered in Sept 6, 2018. Its debt to ING had matured on May 1, 2017.
Alpha Energy shares closed flat at $0.054 on Friday.