British Oil and Gas Company, Savannah Petroleum Plc, focused around activities in Nigeria and Niger, has disclosed that it had obtained a $74 million unsecured loan facility. This disclosure came in a notice made available to the London Stock Exchange.
Purpose of loan: While expressing the company’s pleasure in obtaining the loan, the company’s Chief Financial Officer, Isatou Semega-Janneh stated that it would increase liquidity and provide access to additional capital ahead of the upcoming completion of the Seven Energy Transaction.
He said that the company was looking forward to progressing with the remaining completion workstreams, including the Seven Energy financial restructuring, as updates would be given in the coming weeks.
More details: According to the notice on LSE, the fixed interest premium of 7% payable on the principal amount (and any future amounts drawn) was to be paid at maturity. In the same vein, the principal amount and associated interest premium could be repaid at any point up until the initial loan maturity date of January 17, by which point they were to be fully repaid.
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.
“Subject to mutual agreement between Savannah and the facility provider, an additional tranche of up to $5 million is available to be drawn within a two-year period, such further tranche expected to be made available on similar terms as the initial principal amount.
“The facility is being provided by funds managed by Riverfort Global Capital Limited and Yorkville Advisors Global, LP and provides Savannah with additional liquidity to fund working capital and general corporate purposes ahead of the planned completion of the Seven Energy Transaction.”
What you should know: The Seven Energy Transaction refers to the acquisition of Seven Energy’s assets by Savannah as announced by the company and reported by Nairametrics in 2017 and 2018.