San Leon Energy partner in Nigeria refinances key loan
Source - SMW
San Leon Energy said key partner Eroton Exploration had successfully refinanced a lending facility related to the OML 18 prospect in Nigeria.
As a condition of the facility, three future quarterly payments were needed before the lenders would allow a distribution of dividends from Eroton to its shareholders.
The facility had now been repaid in full, with a $398m repayment, and replaced with a new reserves-based lending facility with Guarantee Trust Bank for the same principal amount.
The new facility had a repayment date of late-2025, compared to the previous facility's date of mid-2021.
The payment requirement had been reduced to two future quarterly repayments, which, combined with the lower quarterly repayment amounts, meant only around $50m was required, compared with more than $100m previously.
The refinanced interest rate, however, was higher, at around 11%, up from 10% previously.
'I am delighted with the terms secured by Eroton for the RBL restructuring, and the impact which Eroton expects this to have, both unlocking substantial additional funds for operational activity, as well as lowering the DSRA hurdle to Eroton paying dividends to its shareholders,' chief executive Oisin Fanning said.
'This is a further material step in addressing previously identified operational and financing issues at OML 18 and follows the recent announcements of new well drilling, and of NNPC (the Nigerian National Petroleum Corporation) paying most of their cash call arrears.'
At 8:22am: (LON:SLE) San Leon Energy PLC share price was +0.3p at 26.95p