Royale Energy, Inc. (ROYL): debt financing — Royale Energy enters $3M secured loan with CEO-affiliated lender at 18% interest

Royale Energy, Inc.

Initial $1.4M from Walou Investments (affiliate of CEO Johnny Jordan); total facility up to $3M.
Interest 18% per annum; maturity August 1, 2025; secured by oil/gas assets in Ector County, Texas.
Related-party transaction approved by disinterested board; terms deemed fair and no less favorable.
Additional loans of at least $100k allowed; prepayment without penalty; no reborrowing.
Collateral includes certain oil and gas properties owned by wholly-owned subsidiary in Texas.

item 1.01 item 2.03 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Royale Energy, Inc. incurred term loan of $1,400,000 with Walou Investments, LP at 18.00% maturing August 1, 2025.

Instrument: term loan
Principal: $1,400,000
Counterparty: Walou Investments, LP
Rate: 18.00%
Maturity: August 1, 2025
Event: incurrence

Exact text from the filing

the administrative agent for the Lenders (“ Agent ”). Pursuant to the Note, the Initial Lender agreed to make an initial loan to the Company in the aggregate principal amount of $1,400,000 (the “ Initial Loan ”), and the Additional Lenders may make one or more additional loans (the “ Additional Loans ” and, together with the Initial Loan, the “ Term Loans ”) which,

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Royale Energy, Inc. entered into Secured Term Loan Note with Walou Investments, LP valued at $1,400,000 (effective 2024-02-09).

Action: entry
Agreement: credit facility
Counterparty: Walou Investments, LP
Value: $1,400,000
Effective: 2024-02-09

Exact text from the filing

On February 9, 2024 (the “ Closing Date ”), Royale Energy, Inc., a Delaware corporation (the “ Company ”), entered into a Secured Term Loan Note (the “ Note ”) with Walou Investments, LP, a Texas limited partnership (the “ Initial Lender ”)

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299 debt financings filed in the last 30 days. Browse all debt financings →

Royale Energy, Inc. filing history →

Source: SEC EDGAR

accession 0001185185-24-000170

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