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Wednesday, May 25, 2016
San Leon Energy updated the status of the production deal on Nigeria’s OML 18. As previously announced on May 16, in order to complete the subsequent parts of the OML 18 Production Arrangement which would result in it securing a 9.72% indirect economic interest in the license, BidCo was required to raise an additional $100 million which was intended to be structured as secured notes issued by BidCo.
A further $30 million, structured as Loan Notes, issued on the same terms as the previous Loan Notes (i.e 17% coupon), has now been provided by funds managed by Toscafund. BidCo has, through a share buyback of its own shares, completed the second step of the three-step OML 18 Production Arrangement.
As a result Midwestern now holds 70.43% of Bidco and San Leon’s share of BidCo has increased to 29.57%, equal to an economic interest in OML 18 of 5.75%.
San Leon’s shares in Bidco remain pledged to Toscafund pending San Leon shareholder and regulatory approvals. Following completion of the third and final step of the Remaining Transactions (requiring $70 million) and of the OML 18 Production Arrangement, San Leon will hold a 40% interest in BidCo.
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