VANCOUVER, BC, Aug. 2, 2021 /CNW/ - (TSX: AOI)
(Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI",
"Africa Oil" or "the Company") is pleased to announce that it has
received a dividend from Prime Oil and Gas Cooperatief UA ("Prime")
and that is has completed the refinancing of its corporate loan
facility. View PDF version.
Prime has distributed a $75
million dividend with a net payment to Africa Oil of
$37.5 million related to its 50%
shareholding. The Company applied $25
million from this dividend to reduce the outstanding balance
of the BTG term loan ("Term Loan") to $98
million, and has subsequently repaid the full amount of the
Term Loan from the proceeds of the new corporate loan facility
("Corporate Facility"). The Term Loan was due to mature in
January 2022. Africa Oil now has an
approximate cash balance of $42
million and net debt balance of $56
million.
The Corporate Facility agreement was signed on May 13, 2021, for an amount of up to $150 million with $130
million committed at that time. The facility and commitments
have now been increased to $160
million, providing Africa Oil with undrawn availability of
$62 million after the repayment of
the Term Loan. This undrawn amount is available until May 2022 and can be utilised for general
corporate purposes, subject to customary covenants.
The Corporate Facility has a three-year term and it will be
repaid from the dividends received from Prime, while ensuring the
Company preserves sufficient minimum cash balance to conduct
operations. This loan has an interest rate of LIBOR plus a margin
of 6.5% in the first year, 7.0% in the second year and 7.5% in the
third year. These terms represent a significant reduction in the
Company's borrowing costs and an extended amortisation profile.
The Corporate Facility banking syndicate includes: Rand Merchant Bank, ABSA, Mauritius Commercial
Bank, Natixis, and Standard Bank.
Keith Hill, Africa Oil's
President and CEO, commented: "I am very pleased to report another
sizeable dividend from Prime. We have received eight dividends for
a total amount of $275 million, in
just over one and half years since the acquisition of our Prime
shareholding. This strong cash flow is a testament to the high
quality of Prime's assets, which is also recognised and supported
by our new lenders. We are also pleased that our Nigerian oil
fields continue to exhibit strong operational and production
performance."
Pascal Nicodeme, Africa Oil's
CFO, commented: "I am delighted that we have achieved one of our
primary objectives for 2021 with the successful refinancing of our
corporate loan. We have substantially reduced our cost of capital
and improved liquidity. We have also strengthened our banking
relationships, which is a strategic advantage as we seek new
opportunities to increase shareholder value. On behalf of Africa
Oil, I thank our new lenders for their support."
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio
in Africa and Guyana. The Company is listed on the Toronto
Stock Exchange and on Nasdaq Stockholm under the symbol
"AOI".
All dollar amounts are in United
States dollars unless otherwise indicated.
This information is information that Africa Oil Corp. is obliged
to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out below on August
2, 2021 at 1:00 a.m. ET.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation). Such statements and information
(together, "forward looking statements") relate to future events or
the Company's future performance, business prospects or
opportunities.
All statements other than statements of historical fact may be
forward-looking statements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"seek", "anticipate", "plan", "continue", "estimate", "expect,
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve
known and unknown risks, ongoing uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. Actual results may differ materially from those
expressed or implied by such forward-looking statements.
SOURCE Africa Oil Corp.