HNR Acquisition in an 8-K said it modified terms of its Senior Secured Term Loan with First International Bank & Trust (FIBT), setting the terms of a senior secured term loan facility of $28 million.
The loan agreement was modified to provide that the SPAC by Dec. 31 must deposit $5 million into a Debt Service Reserve Account and FIBT waived the provision that the amount had to be deposited within 60 days of the loan agreement closing. The amendment also provides that, if at any time prior to Dec. 31, the company or any of its affiliates enter into a sale leaseback transaction the SPAC will deposit the greater of $500,000 or 10% of the proceeds from the transaction into the Debt Service Reserve Account on the effective date of such sale and leaseback transaction.
The sale-leaseback transaction involves the SPAC’s acquisition of Pogo Resources. Pogo’s assets include interests in the Grayburg-Jackson oil field in the Permian Basin in Eddy County, New Mexico. Read more.
