Touchstone Exploration Inc. (LON:TXP) has announced that its wholly owned Trinidadian subsidiary, Touchstone Exploration (Trinidad) Ltd. (TETL), has entered into a Fourth Amended and Restated Loan Agreement with its existing Trinidad-based lender.
As previously disclosed, on December 12, 2024, TETL entered into a Share Purchase Agreement to acquire 100 percent of the share capital of a Trinidadian company from a third party. Upon closing, TETL will pay $23 million in cash, in addition to the acquired entity’s December 31, 2024 cash and abandonment fund balances, subject to purchase price adjustments. The total estimated consideration is approximately $28.5 million. Completion of the Acquisition remains subject to the satisfaction or waiver of certain outstanding conditions precedent.
Touchstone currently has $33.5 million in outstanding debt across its two term loan facilities and revolving loan facility. On May 12, 2025, TETL executed the Amended Loan Agreement, which includes the following key terms:
· a new $30 million six-year non-revolving term loan facility, with no principal payments due in the first eleven months, followed by twenty-one equal quarterly repayments;
· revised financial covenants; and
· a two-year extension of the maturity date of the existing revolving loan facility, with optional two-year renewal periods subject to mutual agreement.
Touchstone Exploration intends to draw the full $30 million under the new term facility to finance the Acquisition and meet obligations under the amended lending arrangements.
In connection with the revised financing arrangement, the parties to the SPA have agreed to extend the Acquisition’s long-stop date to May 16, 2025. The parties must satisfy or waive all remaining conditions precedent by this date, with closing to occur on a mutually agreed date thereafter.
