Riverstone Energy has announced that it has sold its entire CAN$ 28m second lien loan (approximately US$ 21 million) interest in Canadian International Oil Corp (CIOC) to an affiliate of Kendall Family Investments, LLC. The consideration payable by the Kendall Family Investments affiliate reportedly reflects the par value of the loan.
Riverstone Energy says that the CIOC Loan Interest, which has a maturity in 2020 and confers no equity rights in respect of CIOC, was provided to CIOC by the Company in December 2015. The proceeds from the sale of the CIOC Loan Interest will be used towards the exercise of its Warrants in CIOC, which the Company believes represents a more attractive return than the loan. Riverstone Energy says that Kendall Family Investments is a substantial shareholder of CIOC and the sale of the CIOC Loan Interest to its affiliate amounts to a smaller related party transaction.
About Riverstone Energy
Riverstone Energy Limited invests exclusively in the global energy industry, with a particular focus on the exploration & production and midstream sectors. The company says it is uniquely positioned to benefit from the large number of investment opportunities being driven by the North American energy revolution and the continued growth in global energy demand. Riverstone Energy Limited aims to capitalize on the opportunities presented by its manager’s (Riverstone) energy investment platform.
Riverstone Energy sells loan interest in Canadian International Oil Corp : RSE