Restructuring of Existing Term Loans

RNS Number : 2510W

Lekoil Limited

17 August 2020

 

17 August 2020

Lekoil Limited

("LEKOIL" or the "Company")

Restructuring of Existing Term Loans

LEKOIL (AIM: LEK), the oil and gas exploration and production company with a focus on Nigeria and West Africa, is pleased to announce that LEKOIL Oil and Gas Investment Limited ("LOGL"), in which the Company has a 90 per cent economic interest, has agreed and executed a Restructuring Offer Letter with its existing lenders, FBNQuest Merchant Bank ("FBNQuest") to restructure its existing secured interest-bearing term loans.

Following servicing of the quarterly amortisations due on 30 June 2020, LOGL had an outstanding balance of interest-bearing term bank loans of US$15.9 million. This outstanding balance is detailed in the table below:

Lender	Facility Type	Pricing	Maturity Date	Outstanding Balance
FBNQuest Merchant Bank Limited	Term loan with quarterly repayment	LIBOR + 10.00%	30-Jun-21	US$ 2.0 million
FBNQuest Merchant Bank Limited	Term loan with quarterly repayment	LIBOR + 10.00%	30-Jun-21	US$ 3.4 million
FBNQuest Merchant Bank Limited	Term loan with quarterly repayment	LIBOR + 10.00%	30-Sep-23	US$ 10.5 million
Total debt outstanding				US$15.9 million

FBNQuest and LOGL have agreed to restructure the existing three interest-bearing term bank loans into one secured loan under the following terms:

· An extension of loan tenor with new term loan maturity date of 31 March 2024. This represents an increase on the average maturity of the three existing bank loans by 15 months.

· Interest will be paid quarterly in arrears with the pricing remaining at LIBOR + 10.0%.

· Sculpted quarterly term loan principal repayment delivering a cash saving as compared to the previous loan structures of over US$3.0 million over the next 15 months.

This restructured loan now comprises all LOGL's outstanding external bank debt.

Lekan Akinyanmi, LEKOIL's CEO, commented, "We are pleased with our relationship with FBNQuest who continue to provide strong support as a financial partner in developing our asset portfolio. By restructuring our term loans, we have been able to significantly reduce our near term quarterly amortisations thus providing further flexibility and liquidity for the Company as macro-economic sentiments improve."

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information, please visit www.lekoil.com or contact:

LEKOIL Limited Ore Bajomo, Investor Relations	[phone]
Strand Hanson Limited (Financial & Nominated Adviser) James Spinney / Ritchie Balmer / Georgia Langoulant	[phone]
Mirabaud Securities Limited (Broker) Peter Krens / Edward Haig-Thomas	[phone] / [phone]
Instinctif (Financial PR) Mark Garraway / Dinara Shikhametova / Sarah Hourahane	[phone] [e-mail]

 

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