Each one in plain English, with the numbers worked through for a shareholder.
27 July 2016material agreement● NeutralMajor
On July 22, 2016 Contango agreed to sell up to 5,750,000 new shares (including 750,000 underwriters' option) through RBC, SunTrust Robinson Humphrey and Seaport Global, for net proceeds of about $46.9 million. The money is meant to fund a newly announced Southern Delaware Basin acreage purchase and drilling there, and meanwhile to pay down the revolver; if the purchase does not close, it goes to general corporate purposes. The new shares dilute existing holders, and the company agreed not to sell more stock for 90 days.
On October 28, 2014 Contango amended its credit agreement a second time. Interest margins are reset to a sliding scale (LIBOR loans 1.50%-2.50%, versus 1.75%-2.75% originally), and the borrowing base is reaffirmed at $275 million. The company may also spend up to $39.215 million buying back its own shares, provided no default exists and borrowing stays at or below 90% of the borrowing base, and it may use loan proceeds for this. This is the first time the credit facility has allowed share buybacks; the earlier terms restricted dividends.
16 July 2014material agreement termination● Neutral
After director John B. Juneau resigned from the board, Contango's subsidiary Contaro and Juneau Exploration, L.P. ended on July 15, 2014 their advisory agreement on Contaro's investment in Exaro Energy III LLC. Neither side has further rights or obligations under it. This ends a link to a director who had been tied to the company's prospect generation and Exaro; the filing does not give a reason for the resignation.
On April 11, 2014 Contango and its lenders, led by Royal Bank of Canada, amended the October 2013 credit agreement. The first $150 million of new debt issued is now permanently excluded from the automatic 25% cut to the borrowing base; only debt above $150 million triggers the 25% reduction. This amends the facility set up at the Crimson merger close.
