Africa Oil has announced a number of positive amendments to its Corporate Facility.
All lenders have approved increasing the available amount to $100 million from the current unutilized amount of $62 million, and extending the availability period to December 31, 2022, from May 13, 2022. The Corporate Facility maturity date of May 13, 2024, and interest margins are unchanged. The lenders have also waived certain conditions in support of the Company’s plans to implement a shareholder returns program, and have agreed to release their security over the Company’s shares in Africa Energy Corp., Eco (Atlantic) Oil & Gas Ltd. and Impact Oil and Gas Limited.
The Corporate Facility was signed on May 13, 2021, for an amount of up to $150 million. The facility and commitments were subsequently increased to $160 million with $98 million drawn, to repay the Company’s Term Loan arranged in January 2020, for the acquisition of a 50% shareholding in Prime Oil & Gas Cooperatief UA (“Prime). The Company has repaid the balance of $98 million from the dividends received from Prime and is currently debt-free.
Interest charges are unchanged with future drawn amounts incurring interest at rate of LIBOR plus a margin of: 6.5% until May 2022; 7.0% from May 2022 to May 2023; and 7.5% from May 2023 until maturity. The Corporate Facility can be utilized for general corporate purposes, subject to customary covenants.
Keith Hill, Africa Oil’s President and CEO, commented, “The amended Corporate Facility provides us with standby credit at attractive costs and supports our 2022 plans, including the acquisition of producing assets. Together with our debt-free balance sheet and our share of dividends from Prime, we are in a very strong position to take advantage of growth opportunities.”
Pascal Nicodeme, Africa Oil’s CFO, commented, “I am delighted with the strong support of our lenders in agreeing to the amendments. This is an endorsement of our business and strategic plans and reflects the quality of our assets, cash flows and financial strength. I thank our lenders for their continuing support of Africa Oil.”
Africa Oil also reports the following share capital and voting rights update in accordance with the Swedish Financial Instruments Trading Act. As a result of the exercise of 128,100 stock options under the Company’s stock option plan, the Company now has 474,783,455 common shares issued and outstanding with voting rights as at January 31, 2022.