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Africa Oil Announces the Receipt of Prime Dividend, the Upsizing and Completion of its Corporate Loan Refinance
Africa Oil Announces the Receipt of Prime Dividend, the Upsizing and Completion of its Co...
About this update from Meren Energy Inc.
[{"type":"text","content":"\n \n \n \n Africa Oil Announces the Receipt of Prime Dividend, the Upsizing and Completion of its Corporate Loan Refinance\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n VANCOUVER, BC\n \n ,\n \n Aug. 2, 2021\n \n /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI)\n \n –\n \n 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.\n \n View PDF version\n \n .\n \n \n Prime has distributed a\n \n $75 million\n \n dividend with a net payment to Africa Oil of\n \n $37.5 million\n \n related to its 50% shareholding. The Company applied\n \n $25 million\n \n from this dividend to reduce the outstanding balance of the BTG term loan (\"Term Loan\") to\n \n $98 million\n \n , 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\n \n January 2022\n \n . Africa Oil now has an approximate cash balance of\n \n $42 million\n \n and net debt balance of\n \n $56 million\n \n .\n \n \n The Corporate Facility agreement was signed on\n \n May 13, 2021\n \n , for an amount of up to\n \n $150 million\n \n with\n \n $130 million\n \n committed at that time. The facility and commitments have now been increased to\n \n $160 million\n \n , providing Africa Oil with undrawn availability of\n \n $62 million\n \n after the repayment of the Term Loan. This undrawn amount is available until\n \n May 2022\n \n and can be utilised for general corporate purposes, subject to customary covenants.\n \n \n 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...