Lekoil Limited Redenomination of Naira Debt Facilities Completed (3807S)
March 11 2019 - 2:00AM
UK Regulatory
TIDMLEK
RNS Number : 3807S
Lekoil Limited
11 March 2019
11 March 2019
LEKOIL Limited
("LEKOIL" or the "Company")
Redenomination of Naira Debt Facilities Completed
LEKOIL (AIM: LEK), the oil and gas exploration, development and
production company with a focus on Africa, is pleased to announce
the following debt facilities update.
In 2018, as announced, the Company agreed in principle to
refinance a portion of and redenominate its outstanding Naira debt
facilities, totaling approximately 3.08 billion Naira, into United
States Dollars (USD). These facilities included the approximate
2.25 billion Naira facility (principal) from FBNQuest Merchant Bank
("FBNQ MB") and the 827 million Naira facility (principal and
accrued interest) from Sterling Bank plc ("Sterling"). Interest per
annum on these facilities were 6% + NIBOR and 26%,
respectively.
Documentation for this has now been completed and the Company
now has access to a new USD facility of $8.55 million with FBNQ MB,
which will be utilised to refinance the outstanding 3.08 billion
Naira facility with FBNQ MB. The original Sterling facility has
been rolled into this new facility with FBNQ MB, and closed.
The FBNQ MB facility is priced at LIBOR + 10%. There is a
six-month principal repayment moratorium with equal, quarterly
principal repayments thereafter. As part of the transaction, the
tenor on LEKOIL's facilities with FBNQ MB (including the existing
USD facility, amounting to US$5 million) will be extended to 30
June 2021 from 30 June 2019.
The partial refinancing and redenomination allows the Company to
mitigate its exposure to local currency and interest rate
volatility risks while lowering its cost of capital.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
For further information, please visit www.lekoil.com or
contact:
LEKOIL Limited
Alfred Castaneda, Investor Relations
Lisa Mitchell, Chief Financial Officer +44 20 7920 3150
Strand Hanson Limited (Financial &
Nominated Adviser)
James Harris / James Spinney / Ritchie
Balmer +44 20 7409 3494
Mirabaud Securities Limited (Joint
Broker) +44 20 7878 3362 / +44 20
Peter Krens / Edward Haig-Thomas 7878 3447
BMO Capital Markets (Joint Broker)
Jeremy Low / Thomas Rider +44 20 7236 1010
Numis Securities (Joint Broker)
John Prior / Ben Stoop +44 20 7260 1000
Tavistock (Financial PR)
Simon Hudson / Nick Elwes / Barney
Hayward +44 20 7920 3150
-ends-
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END
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