Anfield Energy Secures C$4.3 Million Credit Facility with Shareholder
Anfield Energy Inc. has successfully closed a C$4.3 million credit facility with existing shareholder Extract Advisors LLC. This credit facility, in addition to recent equity financing, will support Anfield's asset transaction strategy and ongoing work programs, including the Marquez-Juan Tafoya transaction and the reactivation of the Shootaring Canyon mill.
Terms of the Credit Facility
The credit facility has a maturity date of October 6, 2028, and bears a coupon of the Secured Overnight Financing Rate (SOFR) plus 5.0% per annum. Anfield has the option to capitalize the interest payable on the credit facility semi-annually. The facility is subject to an original issue discount of 7%. Anfield also issued warrants and paid an arrangement fee to Extract as part of the agreement.
Voluntary Prepayment Option
Anfield has the option to prepay the credit facility after the one-year anniversary of the closing date by paying a prepayment fee. The facility is secured by a corporate guarantee and share pledge from Anfield's subsidiaries.
Advisors and Legal Counsel
Haywood Securities Inc. acted as financial advisor, and Cassels Brock & Blackwell LLP served as legal counsel to Anfield in connection with the credit facility.
In conclusion, Anfield Energy's successful closing of the credit facility with Extract Advisors LLC provides the company with additional financial support for its strategic initiatives. This credit facility will aid Anfield in advancing its asset transaction strategy and work programs, positioning the company for future growth and development in the energy sector.
Implications of Anfield Energy's Credit Facility for New Businesses
Anfield Energy's recent securing of a C$4.3 million credit facility with Extract Advisors LLC, an existing shareholder, signals a significant move in the energy sector. This development, which bolsters Anfield's asset transaction strategy and ongoing work programs, provides a compelling case study for new businesses navigating the complex landscape of financial growth and development.
The credit facility, coupled with recent equity financing, highlights the importance of diverse financing strategies for new businesses. It underlines the potential of leveraging relationships with shareholders to secure additional funding. This could be a valuable takeaway for startups seeking to bolster their financial strategies.
Asset Transaction Strategy
Anfield's use of the credit facility to advance its asset transaction strategy underscores the role of strategic financial planning in business growth. For new businesses, particularly in sectors like energy where asset transactions are common, this could offer insights into how to effectively utilize funding for strategic initiatives.
Legal and Financial Advisory
The involvement of Haywood Securities Inc. and Cassels Brock & Blackwell LLP in this transaction also emphasizes the importance of expert advisory in financial and legal matters. This could prompt new businesses to invest in professional advisory services for complex financial transactions.
In conclusion, Anfield Energy's credit facility agreement offers valuable insights for new businesses, particularly in terms of financing strategies, asset transaction planning, and the role of professional advisory services.