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ZaZa, Hess Agree on Certain Financing Terms
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ZaZa Energy Corporation has reported updates on certain corporate events.
The Company has agreed with Hess to an early release of $15 million of the Company’s money held in escrow. This release was part of a broader transaction that also included: (i) termination of the Company’s overriding royalty interests in certain assets in the Paris Basin, France; (ii) Hess’s release of an interest in the Company’s litigation against certain third parties; and (iii) the payment of $3.5 million of the escrowed funds to Hess. The remaining $11.5 million was released to ZaZa, and these proceeds, combined with approximately $1.1 million of cash on hand, were used to reduce the Senior Secured debt from $26.8 million to $15.0 million. All previously required early pay downs to the Senior Secured holders have now been completed.
ZaZa CEO Todd Brooks commented, "We are pleased to have successfully fulfilled all of the early pay down mandates from our Senior Secured lenders dating back to the July 2012 ZaZa Hess Division of Assets. We look forward to providing operational updates on both our South Texas and East Texas JVs in the coming weeks, and to hosting our 2013 fourth quarter and year-end earnings call."