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!
WHAT DO YOU THINK?
Click on the button below to add 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.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you