Yorkville Advisors agrees £30 million equity facility with Gulf Keystone Petroleum - 5/7/2009
(London/New Jersey, 7 May 2009) Yorkville Advisors, LLC (Yorkville), the US based investment manager to a family of funds, is pleased to announce that it has entered into a £30 million Standby Equity Distribution Agreement (SEDA) with AIM listed Gulf Keystone Petroleum Ltd. (AIM: GKP), an independent oil and gas exploration and production company with assets in Algeria and the Kurdistan Region of Iraq (Kurdistan).
Gulf Keystone entered into the SEDA as a means of raising additional financing, as and when required, to fund its existing and developing activities in the Kurdistan region of Iraq and Algeria, and in order to take advantage of potential opportunities and successes that may arise.
Pioneered 8 years ago by Yorkville, a SEDA offers companies low risk, cost effective ways to optimise their capital structure in pursuit of their growth strategy. The SEDA enables Gulf Keystone, at its discretion, to request funds of up to £30 million in tranches, in exchange for the issue of new equity, on terms related to the market price at each drawdown, up to 36 months from the signing of the agreement.
Ewen Ainsworth, Chief Financial Officer, Gulf Keystone said: “We see the SEDA as one element of our overall financing, which is there to compliment existing arrangements and projects. By its very nature, it also provides us with the wherewithal to react quickly to any successes or new acreage opportunities.”
Paul Strzelecki, Managing Director, Yorkville Advisors UK, said: “The SEDA will give Gulf Keystone more opportunity to exploit favourable circumstances as and when needed, combined with a degree of certainty over future cash flow needs.”
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About Yorkville Advisors and Yorkville Advisors UK
Yorkville Advisors, LLC is the New Jersey, US-based investment manager to a family of funds with approximately USD 900 million assets under management. Yorkville Advisors UK, LLP (Yorkville UK) is the London-based wholly owned sub-advisor to Yorkville Advisors, LLC (Yorkville).
Founded in January 2001 by Mark Angelo, Yorkville specialises in providing flexible, innovative debt and equity investments and financing in publicly listed companies worldwide in a variety of sectors including energy, mining, technology media & telecommunication (TMT), healthcare and shipping. Yorkville has a broad investment mandate and the flexibility to invest across many geographies as well as sectors.
Yorkville tailors its financings according to each company’s need and offers a mix of debt structures, bridge financings, asset backed loans, equity facilities and, in some cases, equity injections.
Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; London UK and Hong Kong. It has also joint venture agreements in Italy and Greece.