British Oil and Gas Company, Savannah Petroleum Plc, focused around activities in Nigeria and Niger, has disclosed that it had obtained an initial tranche of $5 million credit facility out of the $74 million expected from funds managed by Riverfort Global Capital Limited and Yorkville Advisors Global, LP.
Purpose of loan: The facility is meant to fund working capital and general corporate purposes ahead of the planned completion of the Seven Energy Transaction (expected to occur significantly in advance of the Maturity Date).
In a statement issued by the company and signed by Chief Financial Officer, Savannah Petroleum, Isatou Semega-Janneh, it stated that it would increase liquidity and provide access to additional capital ahead of the upcoming completion of the Seven Energy Transaction.
Details of the Facility:
* Fixed interest premium of 7% payable on the Principal Amount (and any future amounts drawn), to be paid at maturity (“Interest Premium”)
• Principal Amount and associated Interest Premium can be repaid at any point up until the initial loan maturity date of 17 January 2020 (the “Maturity Date”), by which point they are to be fully repaid
• In the event that the Facility has not been fully repaid prior to the Maturity Date, or the Company has announced that it has permanently decided not to proceed with the Seven Energy Transaction, any amounts due and outstanding can be converted at the Facility provider’s discretion (in varying amounts in one or more conversions)
• Subject to mutual agreement between Savannah and the Facility provider, an additional tranche of up to US$5m is available to be drawn within a 2 year period, such further tranche expected to be made available on similar terms as the initial Principal Amount.
The statement went further to say that in the event that the facility had not been fully repaid prior to the maturity date, or the company announced that it had permanently decided not to proceed with the seven energy transaction, any amounts due and outstanding could be converted at the facility provider’s discretion in varying amounts in one or more conversions.
Janneh said, “We are very pleased to have accessed this loan facility which increases our liquidity and provides Savannah with access to additional capital ahead of the upcoming completion of the Seven Energy Transaction. Following the signature of the Frontier Transaction documentation, we continue to make good progress with the remaining completion workstreams, including the Seven Energy financial restructuring and look forward to providing further updates in the coming weeks.”