Trinity, this country’s largest independent exploration and production company, yesterday announced plans to raise approximately US$15 million as part of a wider financial restructuring.
Executive chairman Bruce Dingwall said the plan, if successful, will “bring to an end a period of prolonged uncertainty for Trinity, and will provide a strong foundation for the company to move forward and develop the group’s valuable interest across the Onshore, East Coast and West Coast production areas for the benefit of shareholders and the company’s other stakeholders.”
The company said in an official announcement: “The company has been in a formal sale process and strategic review of the options available to the company to maximise value for shareholders since April 8, 2015. Having considered the options available, the board believes that the restructuring represents the best approach for the group and the board now intends to focus exclusively on this funding route.”
The plan includes a placing and subscription of 187,600,000 ordinary shares which is expected to raise US$11.725 million, as well as issuance of convertible loan notes to raise US$3.275 million.
An agreement to sell US20.8 million of the company’s onshore producing assets to Touchstone Exploration Inc. fell through earlier this year and Trinity is now focusing on restructuring, which would reduce its net debt to US27.4 million from $52.5 million as at October 31.
The company said its main shareholder and a number of its directors will be active in the fundraising.The proceeds will go towards paying off creditors, covering one-off restructuring costs, and resuming drilling activities with an initial programme of four new onshore wells.
The company has entered into agreements with creditors, including Citi, to settle its debts, while its T&T subsidiaries have filed a creditors proposal.
“Reaching a satisfactory settlement with our creditors will enable Trinity to utilise the services of significant numbers of employees and contractors and continue to contribute to the economy of Trinidad and Tobago,” Dingwall said.
“Trinity takes great pride in being a locally managed company, and the close working relationships that this fosters.
“It is the forbearance, goodwill and collegiate approach of our many stakeholders that has enabled Trinity to sustain operations and we look forward to maintaining these important working relationships in the future.”
Trinity, which became a listed company on the AIM market of the London Stock Exchange in February 2013, operates 12 licenses—11 in Trinidad and one in South Africa. The company is based in San Fernando with a corporate office in Edinburgh, Scotland.