Business
New Debt Facility with Sterling Bank
New Debt Facility with Sterling Bank.
About this update from Fenikso Ltd
[{"type":"text","content":"\n \nRNS Number : 7261C Lekoil Limited 30 June 2016 \n\n30 June 2016\n \nLekoil Limited \n(\"Lekoil\" or the \"Company\")\n \nNew Debt Facility with Sterling Bank\n \nLekoil (AIM: LEK), the oil and gas exploration and development company with a focus on West Africa, announces today the execution of a new debt facility totalling 5 billion Naira (US$17.7 million).\n \nDebt Financing Update\nLekoil Oil & Gas Investments Limited, a wholly owned subsidiary of Lekoil Nigeria Limited, has signed the agreement for a new 5 billion Naira debt facility (approximately US$17.7 million at the Central Bank of Nigeria exchange rate of 284NGN:1USD) on the Otakikpo asset with Sterling Bank plc (\"Sterling\"), subject to the fulfilment of conditions precedent which are near complete. \n \nThe facility has a maturity of three years and is repayable quarterly following a six-month moratorium with a margin of 10% over NIBOR.\n \nLekoil is pleased to agree on funding from yet another key local lender in Nigeria. The Company has the flexibility to pay a portion of its costs in Naira, and expects to draw down on the facility as needed. The facility has no pre-payment penalty. \n \nIn addition to the US$10 million and 2 billion Naira debt facilities from FBN Capital Limited announced on 20 June 2016, Lekoil has, in aggregate, US$10 million and 7 billion Naira of debt financing as the Company nears commercial production. \n \nLekan Akinyanmi, Lekoil's CEO, said, \"I am delighted that we have agreed to this additional facility with Sterling. This facility provides us with funding we need to complete phase one of our Otakikpo Field Development Plan, culminating in 10,000 bopd of production by year-end. We appreciate Sterling's support, and look forward to building a long-term relationship with them.\" \n \nFor further information, please visit www.lekoil.com or contact:\n \n\n\n\n\nLekoil Limited\nAlfred Castaneda, Investor Relations\nHamilton Esi, Corporate Communications\n \n\n\n \n+44 20 3434 5800\n+44 20 7920 3150\n\n\n\n\nStrand Hanson Limited (Financial & Nominated Adviser)\nJames Harris / James Spinney / Ritchie Balmer\n \n\n\n \n+44 20 7409 3494\n \n\n\n\n\nMirabaud Securities LLP (Joint Broker)\nPete...