FirstAfrica and BowLeven Enter into Credit Facility
Further to the announcement on 23 November 2006 of the proposed offer to be made by BowLeven plc for the shares issued and to be issued in FirstAfrica ("the Offer"), FirstAfrica said that it has entered into formal documentation for a US$25 million Debt Facility with BowLeven, which FirstAfrica can draw down, subject to certain events of defaults and restrictions, to meet its obligations to existing creditors and, with the consent of BowLeven, for other agreed purposes. The details of the facility are as follows:
--The interest rate on the facility is US$ 3 month LIBOR plus 3 percent. per annum payable upon repayment. --The facility is secured on the shares of the two wholly-owned subsidiaries of FirstAfrica which own the East Orovinyare Block and the Epaemeno Block and by floating charges over FirstAfrica and the said subsidiaries. --The facility is available until the earlier of the Offer being withdrawn or lapsing and the Offer becoming unconditional in all respects. --Repayment is triggered inter alia on the following events of default, insolvency, material adverse change, the formal announcement of a recommended competing offer for FirstAfrica or the board of FirstAfrica withdrawing its recommendation for the Offer and in some instances such repayment is subject to a 10 business day grace period. --FirstAfrica may repay the outstanding loan in full upon the giving of five business days notice.
Details relating to the Company's financial position were set out in the announcement made on 23 November 2006 relating to the Offer. Having secured this facility and the company's immediate financial future, trading in the company's ordinary shares on AIM will recommence with immediate effect.
The Debt Facility referred to above is expected to finance the Company through
the Offer Period. However, if the Offer lapses, is withdrawn or becomes
incapable of acceptance, the repayment obligations of the Debt Facility will be
triggered and the Company will need to raise alternative finance in order to
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