Lekoil Agrees Capital Re-Financing Deal, Completes New Debt Facility

West Africa-focused energy company Lekoil announced Monday the refinancing of an existing debt facility and the completion of a new debt facility raising, in aggregate, $20 million.

Lekoil has refinanced its existing $10 million Notes Issuance Agreement (NIA) with FBN Capital Limited and has secured a new 2 billion Naira (approximately $10 million) facility from FBN.

The $10 million facility has a maturity of three years and is repayable quarterly after a six-month moratorium. The existing NIA bridge facility, of which $5 million was due May 2016, has been extended to August 2016 and subsequently refinanced into the new USD facility. The new 2 billion Naira ($10 million) facility has a maturity of three years, is repayable quarterly with ten quarterly instalments after a six-month moratorium.

Following the successful drill stem tests at Otakikpo, which produced oil flows in excess of company expectations, the company reconfirmed that it is on track to complete Otakikpo within the original $82 million capital expenditure budget that was estimated in 2014. 

“I am delighted that we have secured this facility with local lender FBN,” said Lekan Akinyanmi, Lekoil’s CEO, in a company statement.

“This funding represents a strong endorsement of our asset’s value in this market environment and provides validation of our strategy to secure non-dilutive funding from near term commercial production. We appreciate FBN’s support, and look forward to building a long-term relationship with them,” he added.  



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Scottish Government Reveals New Subsea... (Jan 20)
 -  SOFF Secures Services Contract for Jan... (Jan 20)
 -  NPD Grants Lundin Permit for Appraisal... (Jan 20)
 -  Lion: AMT-1 Well Abandoned After Stuck... (Jan 20)
 -  Unite: Workers 'Deeply Unhappy' About ... (Jan 20)


Most Popular Articles

From the Career Center
Jobs that may interest you
CFO/ Senior Financial Manager
Expertise: Accounting|Financial Analyst
Location: Carrizo Springs, TX
 
Sr. Accounting Specialist- Revenue, Severance Tax
Expertise: Accounting
Location: Houston, TX
 
Sr. Accountant / Accounting Specialist, Revenue Accounting
Expertise: Accounting
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $55.49/BBL 2.45%
Light Crude Oil : $52.42/BBL 2.04%
Natural Gas : $3.2/MMBtu 5.04%
Updated in last 24 hours