UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 28, 2018
TRANSATLANTIC PETROLEUM LTD. |
(Exact name of registrant as specified in its charter) |
Bermuda |
001-34574 |
None |
(State or other jurisdiction of |
(Commission File Number) |
(IRS Employer |
incorporation) |
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Identification No.) |
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16803 Dallas Parkway Addison, Texas |
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75001 |
(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (214) 220-4323
(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive Agreement.
DenizBank Credit Facility and 2018 Term Loan. On August 23, 2016, the Turkish branch of TransAtlantic Exploration Mediterranean International Pty Ltd (“TEMI”), a subsidiary of TransAtlantic Petroleum Ltd. (the “Company”), entered into a general credit agreement (the “Credit Agreement”) with DenizBank, A.S. (the “Lender”). The Credit Agreement is a master agreement pursuant to which the Lender may make loans to TEMI from time to time pursuant to additional loan agreements.
On May 28, 2018, the Lender entered into an additional $10 million term loan (the “2018 Term Loan”) with TEMI under the Credit Agreement. The 2018 Term Loan is in addition to the Company’s term loans currently outstanding with the Lender, as described in the Company’s previous periodic reports filed from time to time with the Securities and Exchange Commission. The Company will use the proceeds from the 2018 Term Loan for general corporate purposes.
The 2018 Term Loan bears interest at a fixed rate of 7.25% (plus 0.3% for Banking and Insurance Transactions Tax per the Turkish government) per annum. The 2018 Term Loan has a grace period through July 2018 during which no payments are due. Thereafter, accrued interest on the 2018 Term Loan is payable monthly and the principal on the 2018 Term Loan is payable in five monthly installments of $0.2 million through December 2018, four monthly installments of $0.5 million each through April 2019, four monthly installments of $1.0 million each through August 2019, and four monthly installments of $0.75 million each through December 2019. The 2018 Term Loan matures in December 2019. Amounts repaid under the 2018 Term Loan may not be re-borrowed, and early repayments under the 2018 Term Loan are subject to early repayment fees.
The 2018 Term Loan is guaranteed by Petrogas Petrol Gaz ve Petrokimya Urunleri Insaat Sanayi ve Ticaret A.S. (“Petrogas”), Amity Oil International Pty Ltd (“Amity”), Talon Exploration, Ltd. (“Talon Exploration”), DMLP, Ltd. (“DMLP”), and TransAtlantic Turkey, Ltd. (“TransAtlantic Turkey”) (collectively, the “Guarantors”). Each of the Guarantors is a wholly-owned subsidiary of the Company.
The 2018 Term Loan contains standard prohibitions on the activities of TEMI as the borrower, including prohibitions on encumbering or creating restrictions or limitations on all or a part of its assets, revenues, or properties, giving guaranties or sureties, selling assets or transferring revenues, dissolving, liquidating, merging, or consolidating, incurring additional debt, paying dividends, making certain investments, undergoing a change of control, and other similar matters. In addition, the 2018 Term Loan prohibits Amity, Talon Exploration, DMLP, and Transatlantic Turkey from incurring additional debt. An event of default under the 2018 Term Loan includes, among other events, failure to pay principal or interest when due, breach of certain covenants, representations, warranties, and obligations, bankruptcy or insolvency, and the occurrence of a material adverse effect.
The 2018 Term Loan will be secured by a pledge of (i) the stock of TEMI, DMLP, TransAtlantic Turkey, and Talon Exploration, (ii) substantially all of the assets of TEMI, (iii) certain real estate owned by Petrogas, (iv) certain Gundem real estate and Muratli real estate owned by Gundem Turizm Yatirim ve Isletmeleri A.S. (“Gundem”), (v) certain Diyarbakir real estate owned 80% by N. Malone Mitchell 3rd and 20% Selami Erdem Uras, and (vi) certain Ankara real estate owned 100% by Mr. Uras. In addition, TEMI will assign its Turkish collection accounts and its receivables from the sale of oil to the Lender as additional security for the 2018 Term Loan. Gundem is beneficially owned by Mr. Mitchell, his adult children, and Mr. Uras. Mr. Mitchell is the Company’s Chief Executive Officer and Chairman of the Board. Mr. Uras is the Company’s Vice President, Turkey.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description of Exhibit |
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10.1 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: |
June 1, 2018 |
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TRANSATLANTIC PETROLEUM LTD. |
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By: |
/s/ Chad D. Burkhardt |
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Chad D. Burkhardt |
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Vice President, General Counsel and Corporate Secretary |
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Exhibit 10.1
EK B: VADELİ KREDİ SÖZLEŞMESİ İşbu Vadeli Kredi Sözleşmesi (“Ek Sözleşme”), 31/08/2016 tarihli ve Kİ2-00000411 numaralı Genel Kredi Sözleşmesi (“GKS”) ve diğer Finansman Belgelerine ek olarak, Banka ile TRANSATLANTİC EXPLORATİON MEDİTERRANEAN INTERNATIONAL PTY LTD.MERKEZİ AVUSTRALYA TÜRKİYE ANKARA ŞUBESİ (“Kredi Alan”) arasında aşağıdaki şartlar dahilinde 28/05/2018 tarihinde imzalanmışur. Taraflar, aşağıda belirtilen hususların Finansman Belgelerinde belirlenen hususlar ile birlikte aynen ve eksiksiz olarak uygulanacağı, işbu Ek Sözleşmenin GKS’nin ayrilmaz bir parçası olduğu hususunda mutabiktrılar. İşbu Ek Sözleşmede yer almayan hususlarda GKS hükümleri geçerli olacaktur. 1. KREDİ’YE İLİŞKİN ESASLAR 1.1 Kredi’nin Limiti/Para Cinsi: 10.000.000.00 USD (Yalnız/Onmilyon USDollars) Döviz Kredisi 1.2 Vadesi: Kredi vadesi toplam 19 (OnDokuz) aydır. Kredinin geri ödenmesine ilişkin ödeme planı işbu Ek Sözleşme’nin ekinde (“Ödeme Planı”) yer aldığı gibidir. 1.3 Faiz Oranı: GKS’nin 2.05. maddesinde yer alan kredi faizi, yıllık % 7,25 (yüzde Yedi virgül Yirmi Beş) olarak belirlenmiştir. 1.4 Erken Geri Ödeme: İşbu Ek Sözleşme kapsamında kullanılan Kredi’nin GKS’nin 2.08. maddesi kapsamında tamamının veya bir kısmının Kredi Alanın özkaynakları ile erken geri ödenmesi durumunda. Kredi Alan, kalan Kredi anapara tutarı üzerinden %0.5 (yüzde sıfır virgül beş) oranında, Kredinin diğer finansal kuruluşlar aracılığı ile erken geri ödenmesi durumunda. Kredi Alan Kalan kredi tutarı üzerinden yıllık %2 (Yüzde iki) erken geri ödeme komisyonunu Bankaya ödeyecektir. 1.5 Kredi Kullanım Amacı: İşletme Sermayesi Finansmanı ve Yatırım Harcamaları.
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ANNEX B: TERM CREDIT CONTRACT This Term Credit Contract (“Supplementary Contract”), was signed in addition to the General Credit Agreement (“GCA”) dated 31/08/2016 and numbered Kİ2-00000411 and other Financing Documents, Between the Bank and TRANSATLANTİC EXPLORATİON MEDİTERRANEAN INTERNATIONAL PTY LTD.MERKEZİ AVUSTRALYA TÜRKİYE ANKARA ŞUBESİ (“Borrower”) under the conditions below on 28/05/2018. The parties agree that the following provisions are an integral part of the GCA of this Supplementary Contract, which shall apply exactly and in full with the particulars specified in the Financing Documents. The provisions of GCA shall apply in respect of particulars not included in the Supplementary Contract. 1. PRINCIPLES RELATED TO THE CREDIT 1.1 Credit Limit/Currency: USD 10.000.000.00 USD (Ten Million US Dollars) 1.2 Maturity: The maturity of the credit is 19 (nineteen) months. The payment plan for the repayment of the credit is as shown in Supplementary Contract’s annex (“Payment Plan”). 1.3 Interest rate: The interest rate on the credit is %7.25 (Seven point Twenty-Five) per year as mentioned in GCA article 2.05. 1.4 Early Payment: In the event that all or a part of the Credit used within the scope of the Supplementary Contract is paid early within the context of the article 2.08 of the GCA, with the Borrower’s own funds, the Borrower will pay 0.5% (five per mil) per year of the remaining Credit capital; in case the credit is paid early by other financial institutions, the Borrower will pay 2% (two percent) per year of the remaining credit amount as an early payment penalty. 1.5 Credit Utilizantion Purpose: Operating Capital Financing and Investment Expenditures.
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3.3 Kredi alan, Bankanın yazılı ön izni olmadan, malvarlığında azalmaya yol açacak faaliyetlerini engelleyecek, imkansız kılacak veya Esaslı Olumsuz Etki yaratacak şekilde varlıklarının veya gelirlerinin herhangi bir bölümünü veya tamamını satmayacak ve satılmasına müsaade etmeyecek, devretmeyecek veya bunlar üzerinde başka şekilde tasarrufta bulunmayacaktır. 3.4 Kredi alan, Bankanın yazılı ön izni olmadan, gerek yurt içi gerekse de yurtdışındaki finansal kurum ve/veya kuruluşlara borçlanamayacağım veya lehlerine teminat vermeyeceğini ve Grup firmalarının da (Transatlantic Exploration Mediterranean lnternational Pty Ltd. Merkezi Avustralya Türkiye Ankara Şubesi, Petrogas Petrol Gaz ve Petrokimya Ürünleri Inşaat Sanayi ve Ticaret Anonim Şirketi, Amity Oil İnternational Pty Limited Merkezi Avustralya Türkiye Ankara Şubesi. Talon Exploration Ltd.-(Merkezi Bahama Adalari) Türkiye Ankara Şubesi, DMLP Ltd Merkezi Bahama Adalari Türkiye Ankara Şubesi, Transatlantic Turkey Limited Şirketi-Türkiye Ankara Şubesi) gerek yurtiçindeki gerekse de yurtdışındaki finansal kurum ve/veya kuruluşlara borçlanmayacağını kabul ve taahhüt eder. 3.5 Kredi alan, Bankanın yazılı ön izni olmadan, ortaklık yapısında doğrudan veya dolaylı herhangi bir kontrol değişiklik meydana gelmeyeceğini kabul ve taahhüt eder. İş bu madde kapsamında ‘‘Kontrol” herhangi bir Kişinin, (i) Sermayesinin %50 sinden (yüzdeelli) fazlasına doğrudan veya dolaylı olarak sahip olmasını; veya (ii) Yukarıda (i) bendinde sayılan koşul aranmaksızın imtiyazlı hisseler. oy anlaşmaları veya sair surette oy hakkının çoğunluğunu elinde bulundurmasını: veya (iii) Yukarı (i) bendinde sayılan koşul aranmaksızın herhangi bir suretle yönetim kurulu üyelerinin karara esas çoğunluğunu atayabilme ya da görev alma gücünü elinde bulundurmasını ifade eder. |
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3.3 The borrower will not engage in activities or will not sell or will not permit the sale of any or all of its assets or revenues in such that would lead to a reduction, preclusion or in a way as to create an Essential Negative Impact and will not transfer or otherwise dispose on these without the Bank’s written prior consent. 3.4 The borrower acknowledges and undertakes that it shall not borrow from domestic or international financial institutions or give collateral in their favour and the Group companies (Transatlantic Exploration Mediterranean lnternational Pty Ltd. Merkezi Avustralya Türkiye Ankara Şubesi, Petrogas Petrol Gaz ve Petrokimya Ü rünleri In ş aat Sanayi ve Ticaret Anonim Şirketi.Amity Oil international Pt Limited Merkezi Avustralya T ü rkiye Ankara Ş ubesi, Talon Exploration Ltd.-(Merkezi Bahama Adalari) Türkiye Ankara Ş ubesi, DMLP Ltd Merkezi Bahama Adalari T ü rkiye Ankara Ş ubesi, Transatlantic Turkey Limited Sirketi-Türkiye Ankara Ş ubesi) shall not incur any debt to domestic or international financial institutions without the prior written consent of the Bank. 3.5 The borrower acknowledges and undertakes that no direct or indirect control change will occur within the partnership structure of the borrower without the prior written consent of the Bank. Within the context of this article, “Control” refers to any person, (i) Having direct or indirect ownership of more than 50% of the capital; or (ii) (I) possessing the majority of privileged shares, voting rights, voting agreements or otherwise, irrespective of the circumstances set out the (i) item above; or (iii) Possessing the authority to appoint or dismiss the decisive majority of the board members in any way irrespective of the circumstances set out the (i) item above. |
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EK: Ödeme Planı |
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ANNEX: Payment Plan |
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KREDĺ ALAN TRANSATLANTİC EXPLORATİON MEDĺTERRANEAN INTERNATIONAL PTY LTD. MERKEZĺ AVUSTRALYA TÜRKĺYE ANKARA ŞUBESĺ |
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BORROWER TRANSATLANTİC EXPLORATİON MEDİTERRANEAN INTERNATIONAL PTY LTD. INCORPORATED IN AUSTRALIA, TURKEY ANKARA BRANCH |
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Sicil (veya Oda) Numarasi : |
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ANKARA – 383993 |
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Register (or Chamber) Number: |
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ANKARA - 383993 |
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Internet Sitesi: |
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Telefon |
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0312-9391950 |
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Phone |
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0312-9391950 |
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number: |
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Adres: |
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ĺran Caddesi Karum ĺ ş Merkezi No:21 F Blok Kat:5 No: 427 Kavaklıdere Çankaya / Ankara Posta Kodu : 06680 |
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Address: |
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ĺran Caddesi Karum İş Merkezi No:21 F Blok Kat:5 No: 427 Kavaklıdere Çankaya / Ankara Postcode : 06680 |
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İmza: |
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Signature: |
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BANKA |
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BANK |
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DENİZBAN A. Ş . |
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DENİZBANK A. Ş . |
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Sicil |
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368587/316169 |
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Registry |
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368587/316169 |
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Number: |
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www.denizbank.com |
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www.denizbank.com |
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Sitesi: |
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Telefon Numarası: |
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444 0 800 |
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Phone Number: |
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444 0 800 |
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Adres: |
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Büyükdere Cad. No:141 34394 Esentepe/ĺstanbul |
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Address: |
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Büyükdere Cad. No:141 34394 Esentepe / ĺstanbul |
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ĺmza huzurumda atıldı ve müşteri bilgileri teyit edildi. |
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The Paper were signed in my presence and customer information has been verified. |
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OSTİM TİCARİ MERKEZ Ş UBE |
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OSTİM COMMERCIAL CENTRAL BRANCH
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İşbu Ek Sözleşmenin bir nüshası tarafıma teslim edilmiş olup, erken geri ödeme ve kredi kullandırım komisyonu dahil yukarıda belirtilen tüm hususlar talep ettiğim ve Banka ile mutabık kaldığım kredi esaslarına uygundur. |
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I received a copy of this Additional Contract and all elements including the early payment and credit usage commission is consistent with the credit provisions I have requested and agreed with the Bank. |
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KREDİ ALAN |
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BORROWER |
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TRANSATLANTİC EXPLORAT İON MED İ TERRANEAN INTERNATIONAL PTY LTD. MERKEZİ AVUSTRALYA TÜRKİYE ANKARA ŞUBES |
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TRANSATLANTİC EXPLORATİON MEDİTERRANEAN INTERNATIONAL PTY LTD. INCORPORATED IN AUSTRALIA, TURKEY ANKARA BRANCH |
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İmza: |
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