Nighthawk agrees refinancing; amends CBA arrangement

Nighthawk Energy, the US focused oil development and production company said it has entered into a new $3m second lien note financing with certain shareholders of the company.

It added that it had also executed amendments to two existing agreements and an existing loan note to defer the payment of cash interest and royalty payments as required by the fourth amendment to the facility agreement between the company and the Commonwealth Bank of Australia which was announced on 30 June 2016.

The new $3m second lien notes bear interest of 15% per annum, payable quarterly, and include a 1% overriding royalty interest, based upon production in excess of projected rates from the company's pilot project. The new notes are not convertible, Nighthawk said.