- Fixed coupon of 6.5% p.a.,
- Four-year term and
- Insurance cover for bond creditors
Following the successful start of gas production in the Cook Inlet in Southern Alaska last November, the Deutsche Oel & Gas Group plans to at least double daily natural gas production in the Kitchen Lights Unit in the 2016 drilling season. Two additional production wells are to be drilled for this purpose, the first of which has already been financed.
The second well will be used to provide long-term cover for the gas supply agreements that have already been successfully entered into. This also includes the agreement recently reached with ENSTAR, the largest gas supplier in Alaska, which is valued at up to USD 247 million.
In order to finance the second well and the general operations of the Deutsche Oel & Gas Group, a wholly owned subsidiary of Deutsche Oel & Gas S.A., Deutsche Oel & Gas I S.A., is issuing a corporate bond with a total volume of up to EUR 50 million.
The bond has a term of four years from 2016 to 2020 and bears interest at a fixed rate of 6.5% p.a. Once the payment period has ended the securities will be listed on the Open Market of the Frankfurt Stock Exchange under securities identification number A18X5C, and will tradeable at any time.
A comprehensive insurance package will be drawn up, which will be assigned to a trustee as collateral for the bond creditors. The insurance policies taken out include, among others, business interruption insurance, trade credit insurance, political risk insurance, third-party financial loss insurance for the trustee, as well as prospectus liability insurance.