Dutchess Opportunity Fund has agreed a GBP30 million extension of the Equity Line Facility (ELF) to Australian-based Range Resources, Ltd.
With this extension of the Equity Line Facility, Range Resources will have immediate access to funds for any appraisal operations that would be necessary, should their exploration wells result in a discovery.
The flexibility to raise capital at the discretion of the company, and with no obligation to do so, is what makes the ELF such an attractive source of financing for public companies. It allows the management to decide the timing and amounts of each draw.
Ashton Jones, head of Dutchess’ Australian business development, says: “As a result of the downturn in the global equity markets, most traditional sources of funding are not available to companies. Credit is tight, banks aren’t lending, and this puts companies in a vulnerable position to keep operations going or expand operations. As a result, the ELF has grown in popularity among global exchanges because it fills that void left by financial institutions that have ceased new investments.”
