Caledonian Secures Two Year Extension to 7.5% First Secured Notes

Caledonian Royalty has successfully closed a $10 million equity issue, repaying net proceeds to individual holders of Caledonian’s 7.5% first secured notes.
According to the press release:

Net proceeds of $9 million were applied to repay all of the individual holders…on August 31, 2016, and to further reduce the balance of the outstanding principal amount of the Notes to $41 million. 

The remaining two Canadian Bank Noteholders have agreed to extend the maturity date of the Notes for two years to August 31, 2018 under essentially the same terms and conditions.

Caledonian is continuing the equity capital raise from accredited investors through the issuance of additional Units priced at $2.00 comprised of one common share and one half a common share purchase warrant exercisable at $3.50 per share for three years from the closing date of each tranche. Further equity capital raised will be used for general corporate purposes, debt repayment and new acquisitions of oil and natural gas royalties.

Click here for the full press release.