{"id":2721,"date":"2015-03-18T09:48:54","date_gmt":"2015-03-18T09:48:54","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=2721"},"modified":"2015-05-19T12:59:30","modified_gmt":"2015-05-19T12:59:30","slug":"afren-reaches-preliminary-agreement-interim-funding-refinancing-structure","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/afren-reaches-preliminary-agreement-interim-funding-refinancing-structure\/","title":{"rendered":"Afren reaches preliminary agreement for interim funding and refinancing structure"},"content":{"rendered":"

Afren has said it reached an agreement in principle with certain noteholders under its 2016 Notes, 2019 Notes and 2020 Notes and a majority of the lenders under its existing US$300 million Ebok credit facility to address its short and longer-term funding needs and recapitalise its capital structure.<\/p>\n

The agreement regards the key terms of a proposed interim funding and recapitalisation of the Group, which is intended to result in the provision of US$300 million of net total funding before the end of June 2015.<\/p>\n

Afren adds that it has considered a range of proposals and alternatives from both existing stakeholders and third parties and concluded that a transaction with its current creditors offers the best alternative that is capable of being implemented.<\/p>\n

Afren has reached a conditional agreement with noteholders representing approximately 42% of the outstanding principal amount due under its 2016 Notes, 2019 Notes and 2020 Notes (the Ad Hoc Committee) for the provision of US$200 million in net interim funding in the form of a super senior private placement notes, which are expected to be issued by the end of March 2015 (the Interim Funding).<\/p>\n

This Interim Funding will provide initial liquidity to the Group and provide time to implement the required steps towards the completion of the recapitalisation transaction that has been agreed in principle between the Ad Hoc Committee and a majority of its lenders under its existing US$300 million Ebok credit facility.<\/p>\n

The Ad Hoc Committee, together with lenders representing more than 67% by value of the lenders under the Ebok Facility have also agreed in principle to implement a financial and capital restructuring to secure the Group\u2019s future.<\/p>\n

The key elements to the Recapitalisation include:<\/p>\n