Lucas Energy Inc. (NYSE: LEI) restructured its outstanding long-term loan through an agreement, the company said May 1.
The loan has a $7.3 million outstanding balance, an interest rate of 12% a year and will mature in August 2015, Lucas Energy added.
Under the agreement, the company will defer amortizing principal payments until September, Lucas Energy said. In October, the payments will begin, the company said. An additional principal payment of $266,000 per quarter will also begin, the company noted.
Additionally, the company will issue 75,000 restricted shares to the lender and also pay it a $25,000 restructuring fee and legal expenses, Lucas Energy said.
"The completion of this loan restructuring further bolsters our liquidity so that we are now able to pursue strategic alternatives to increase the size and scope of the company from a stronger position," said Anthony C. Schnur, CEO.
Houston-based Lucas Energy acquires and develops domestic oil and natural gas.
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