Savannah Petroleum Plc, a British independent oil and gas company focused around activities in Niger and Nigeria, has announced the signature of a $74m unsecured loan facility.
The company said in a notice made available to the London Stock Exchange that the fixed interest premium of seven per cent payable on the principal amount (and any future amounts drawn) was to be paid at maturity.
It added that the principal amount and associated interest premium could be repaid at any point up until the initial loan maturity date of January 17, by which point they were to be fully repaid.
According to the notice, in the event that the facility had not been fully repaid prior to the maturity date, or the company announced that it had permanently decided not to proceed with the seven energy transaction, any amounts due and outstanding could be converted at the facility provider’s discretion in varying amounts in one or more conversions.
The statement read in part, “Subject to mutual agreement between Savannah and the facility provider, an additional tranche of up to $5m is available to be drawn within a two-year period, such further tranche expected to be made available on similar terms as the initial principal amount.
“The facility is being provided by funds managed by Riverfort Global Capital Limited and Yorkville Advisors Global, LP and provides Savannah with additional liquidity to fund working capital and general corporate purposes ahead of the planned completion of the Seven Energy Transaction.”
The Chief Financial Officer, Savannah Petroleum, Isatou Semega-Janneh, said the company was very pleased to have accessed the loan facility, which increased liquidity and provided access to additional capital ahead of the upcoming completion of the Seven Energy Transaction.
He said following the signature of the Frontier Transaction documentation, the company continued to make good progress with the remaining completion workstreams, including the Seven Energy financial restructuring, and looked forward to providing further updates in the coming weeks.