Infrastrata repays loan from Baron Oil early

InfraStrata repaid its loan from Baron Oil early but modified the terms of its loan agreement, extending the latter's right to buy into its Islandmagee development in exchange for a cash payment.

In May 2015, Baron provided €1.8m to fund Infrastrata's working capital requirements until it completed the work programme for the Islandmagee gas storage project in Northern Ireland, which would release a grant of equal size from the European Commission.

The loan carried an interest rate of 8% and included two options allowing Baron Oil to extend the period of the loan until 31 December 2016 and to convert the entire balance into a 15% equity stake in Infrastrata's subsidiary Islandmagee Storage Limited.

If the option were excercised Infrastrata and its project manager Moyle Energy Investments would provide the necessary shares pro-rate.

The option has now been modified to run until 31 March 2017 and allows Baron to purchase a 15% interest in IMSL for £1,536,498.

Repayment of the loan meant the interest due under the terms of the facility would be lower had Baron chosen to extend it, Infrastrata said in a statement.

As of 09:43 BST shares in Infrastrata were up by 14.89% at 1.35p.