i3 Energy PLC Announces CAD 75 Million RBL & Settlement of Existing Loan - Seite 2

We maintain an extremely positive working relationship with Trafigura, and the expansion of our commercial dealings with a range of sophisticated debt capital market investors attests to the quality of our portfolio, staff, and the success of our development operations in Canada over the last several years."

The establishment of a CAD 75 million senior secured revolving credit facility with a Canadian chartered bank was utilized to settle the Company's existing CAD 75 million Loan facility with Trafigura, without prepayment penalty, of which approximately CAD 57 million was outstanding at the time of the repayment. Secured against substantially all the assets and shares of i3 Energy Canada Ltd., the new Credit Facility, comprised of a CAD 55 million revolving facility and a CAD 20 million operating loan facility, has been established for i3 Energy's wholly owned subsidiary, i3 Energy Canada Ltd. The two-year term of the new Credit Facility is expected to be extended on an annual basis, subject to lender approval.

The Company has initially drawn down approximately CAD 27 million on the new Credit Facility, which was used, along with cash on hand, to repay the Trafigura Loan. The interest rate on the outstanding portion of the revolving facility depends on certain ratios and at inception will be Canadian Prime Rate plus 2.00%, with the option to change to Canadian Overnight Repo Rate plus 3.00% should it be more favourable to do so. The balance of undrawn credit will be available for general corporate purposes, including working capital requirements, acceleration of organic growth from i3's proven portfolio of development drilling locations, and to fund accretive acquisition opportunities.

The refinanced capital structure provides greater financial flexibility by unlocking the Company's significant working capital surplus and enhances its free cash flow profile through the elimination of the previously managed three-year, CAD 25 million per annum, straight-line amortization schedule. With this refinancing, the Company now has the ability to accelerate development of its extensive inventory of development locations to enhance shareholder value.

Following the establishment of the new Credit Facility, the Company plans to release its 2024 capital budget in mid-April. The Company will remain disciplined with its conservative approach to debt management, as it looks to balance stable, predictable, growth, along with its ongoing dividend program.