CALGARY, May 3, 2013 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG)
("Sterling" or the "Company"), is pleased to announce the settlement of
the previously announced USD 225 million senior secured bond issue (the
"Bond") issued by its UK subsidiary Sterling Resources (UK) Ltd. (the
"Issuer") and full repayment of the £105 million senior secured credit
facility held with a group of lending banks (the "Bank Facility").
Pareto Securities acted as Sole Manager and Bookrunner of the Bond
The settlement date for the Bond was April 30, 2013 (the "Settlement
Date") and it will mature on April 30, 2019 after its six year term.
The Bond carries an annual coupon rate of 9.0 percent payable
semi-annually and it is callable at the option of the Issuer at any
time with a roll-up of outstanding interest for the first two years and
a call premium of 105 percent for the initial three years, with
declining premiums thereafter. Commencing eighteen months following the
Settlement Date, the Bond will amortize 10 percent of the issue amount
every six months until maturity. The amortizations will be performed at
a price of 105 percent of par value with the exception of the final
installment which will be repaid at 100 percent of par value. Prior to
the first interest payment date of October 30, 2013 the Bond will be
listed on the Oslo Stock Exchange or the Nordic ABM (Oslo).
"With proceeds from the Bond issue now received and the Bank Facility
repaid, Sterling is well positioned financially to complete the
development of Breagh and to move forward with other strategic
priorities internationally in a financially disciplined manner," stated
Mike Azancot, Sterling's President and CEO. "The Breagh commissioning
process is proceeding well and we look forward to first gas in August
2013," added Mr. Azancot.
Sterling is a Canadian-listed international oil and gas company
headquartered in Calgary, Alberta with assets in the United Kingdom,
Romania, France and the Netherlands. The common shares are listed and
posted for trading on the TSX-V under the symbol "SLG".
Neither the TSX-V nor its Regulation Services Provider (as that term is
defined in the policies of the TSX-V) accepts responsibility for the
adequacy or accuracy of this release.
Filer Profile No. 00002072
All statements included in this news release that address activities,
events or developments that Sterling expects, believes or anticipates
will or may occur in the future are forward-looking statements.
These forward-looking statements involve numerous assumptions made by
Sterling based on its experience, perception of historical trends,
current conditions, expected future developments and other factors it
believes are appropriate in the circumstances. In addition, these
statements involve substantial known and unknown risks and
uncertainties that contribute to the possibility that the predictions,
forecasts, projections and other-forward looking statements will prove
inaccurate, certain of which are beyond Sterling's control, including:
the impact of general economic conditions in the areas in which
Sterling operates, delays in production, third party performance
failures, civil unrest, industry conditions, changes in laws and
regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced,
increased competition, the lack of availability of qualified personnel
or management, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required
approvals of regulatory authorities. In addition there are risks and
uncertainties associated with oil and gas operations. Readers should
also carefully consider the matters discussed under the heading "Risk
Factors" in the Company's Annual Information Form.
Undue reliance should not be placed on these forward-looking statements,
as there can be no assurance that the plans, intentions or expectations
upon which they are based will occur. Sterling's actual results,
performance or achievements could differ materially from those
expressed in, or implied by, these forward-looking statements. These
statements speak only as of the date of the press release. Sterling
does not intend and does not assume any obligation to update these
forward-looking statements except as required by law.
Financial outlook information contained in this news release about
prospective results of operations, financial position or cash flows is
based on assumptions about future events, including economic conditions
and proposed courses of action, based on management's assessment of the
relevant information currently available. Readers are cautioned that
such financial outlook information contained in this news release
should not be used for purpose other than for which it is disclosed
SOURCE: Sterling Resources Ltd.
For further information:
visit www.sterling-resources.com or contact:
Mike Azancot, President and Chief Executive Officer, Phone: 44-20-3008-8488, Mobile: 44-7740-432883, firstname.lastname@example.org
David Blewden, Chief Financial Officer, Phone: 44-20-3008-8488, Mobile: 44-7771-740804, email@example.com
George Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Mobile: (403) 519-3912, firstname.lastname@example.org