Oando Energy Executes Second Facility Agreement with Oando Plc
Oando Energy Resources Inc., a company focused on oil and gas exploration and production in Nigeria, has entered into a second facility agreement with Oando Plc, the 94.6 percent shareholder of the Company, pursuant to which Oando Energy Resources will borrow US $200 million, at an annual interest rate of 5 percent, repayable in cash by February 28, 2014. The intended use of proceeds of the loan will be payment of the purchase price for the proposed acquisition by Oando Energy Resources of the Nigerian upstream oil and gas business of ConocoPhillips. Pursuant to the Second Facility Agreement and the facility agreement between the Company and Oando dated May 30, 2013, as amended, Oando Energy Resources owes an aggregate of US $601 million plus interest to Oando.
The Second Facility Agreement does not become effective until Oando Energy Resources confirms in writing to Oando that (i) approval from the Toronto Stock Exchange in respect of the Second Facility Agreement has been obtained and (ii) the independent directors of the Company unrelated to Oando have recommended the approval of the effectiveness of the Second Facility Agreement to the board of directors of the Company, who have approved the effectiveness of the Second Facility Agreement (with directors affiliated with Oando abstaining from the vote).
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- Oando Energy Executes Second Facility Agreement with Oando Plc (Dec 26)