Caza Oil & Gas financing talks continue as loan pressure mounts

2nd Nov 2015 12:19

(ShareCast News) - Caza Oil & Gas has entered exclusive talks with an unnamed third party about an equity fundraising to help it pay its debts.Since the summer, Caza has been under pressure from the terms of its 2013 loan from private equity group Apollo Global Management.Having negotiated some breathing space, after breaching the covenants of the loan, the AIM-listed company and its advisers are now "actively considering all available debt and equity financing options, as well as asset sales".Management said its main aim was to retire the $45m outstanding on the Apollo facility, together with sums owed pursuant to another convertible loan with a Yorkville investment fund, as well as raising cash to continue developing its Bone Spring assets in Delaware."Advanced" discussions with a third party that it revealed in October, have continued, leading Caza to agree to a short period of exclusivity to help ease the conclusion of negotiations.Shares in Caza were down 26% to 0.35p by 1325 GMT on Monday.