Petroleum Africa
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Tuesday, October 15, 2013
Oando Energy Resources (OER) received commitment letters for up to $815 million of bank credit facilities which will be largely applied towards payment of the purchase price in respect of its proposed acquisition of ConocoPhillips’ Nigerian upstream business. The credit facilities are comprised of up to $465 million Reserve Based Lending Facility, internationally placed and led by BNP Paribas, Standard Bank and Standard Chartered Bank. There is also a $350 million Senior Secure Loan jointly arranged locally in Nigeria by FBN Capital and FCMB Capital Markets.
OER in September advised the market of the extension of the outside date for the completion of the COP Acquisition to November 30, 2013. As a result of the termination of the agreement to purchase Phillips Brass Ltd. the net purchase price payable to complete the ConocoPhillips acquisition was reduced to approximately $1.22 billion.
The RBL and Senior Loan remain subject to various closing conditions, including execution of definitive documentation.
“The receipt of the commitment letters represents an important step towards closing the COP Acquisition and concludes the 2nd stage in our financing plan, having initially paid a US$435 million deposit to COP,” said Pade Durotoye , CEO of Oando Energy Resources. “We have sought to optimally finance this acquisition to retain maximum value for our shareholders. We will now proceed to the final stage of concluding the financing required for completion of the ConocoPhillips acquisition.”
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