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Wednesday, July 3, 2013
Heritage Oil Plc reported that Shoreline Natural Resources Ltd., a special purpose private Nigerian company formed between a subsidiary of Heritage and a local Nigerian partner, Shoreline Power Company Ltd., successfully completed the refinancing of its existing bridge loan facility. The new facility is a five-year $500 million senior secured revolving reserves based lending facility (RBL Facility) which can be increased up to $600 million.
The RBL Facility, which is secured at the Nigeria level, replaces the bridge loan executed as part of the acquisition of a 45% interest in the OML 30 license, and provides long-term financing to Shoreline to further develop the license. The RBL Facility has been arranged on better terms and will provide greater flexibility than the bridge loan.
Standard Bank Plc was the coordinating mandated lead arranger and bookrunner for the RBL Facility and was joined by a syndicate of three leading Nigerian banks, First City Monument Bank Plc as mandated lead arranger and Ecobank Nigeria Ltd. and Fidelity Bank Plc as lead arrangers. Funds have been drawn under the RBL Facility and the outstanding amounts under the bridge loan have been fully repaid.
On completing the RBL Facility $50 million of cash collateral, which was put in place under the bridge loan as part of the security following the sale of the Miran asset has been released to Heritage.
Tony Buckingham, CEO, commented: “We are very pleased to close the refinancing of existing debt facilities with long term debt. The strong syndicate of local Nigerian lenders combined with the improved borrowing cost and structure reflects the significant cash flow generation from the world class OML 30 asset in Nigeria. The region remains a core focus for Heritage as we continue to consider further opportunities.”
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