FBN Capital has revealed details of the $1.4 billion secured term loan and accordion facilities it obtained for Seplat Petroleum Development Company from a consortium of 5 Nigerian banks. The facility which closed in January, includes a new US$700 million seven year secured term facility which includes an option to upsize the facility by up to an additional US$700 million for qualifying acquisition opportunities.
The new facility, along with a new US$300 million three year secured revolving credit facility provided concurrently by international banks, refinanced Seplat’s existing debt portfolio to ensure a robust capital structure and strategically position the Company for future oil and gas acquisition opportunities in Nigeria. In on the transaction were United Bank for Africa, Zenith Bank, First Bank of Nigeria and Standard Bank and Stanbic IBTC Bank.
Commenting on the transaction, Austin Avuru, Chief Executive Officer of Seplat, noted “We are pleased to have extended our banking relationships with several existing and new lenders, both Nigerian and international. This successful re-financing, which commenced several months ago, significantly enhances our already robust capital structure and underscores the quality of our asset base”.
Kayode Akinkugbe, Managing Director of FBN Capital Limited said: “FBN Capital is very proud of the instrumental role it played in assisting Seplat to structure the local financing to optimize its capital structure”. He went further to state that the FBN Holdings Group is delighted to assist the growth of indigenous oil & gas companies within the sector and will continue to deploy its extensive debt arranging experience and structuring expertise in executing complex and robust transactions in record time”.
Following the structured finance, Seplat wasted no time in its acquisitions. After passing up the opportunity to acquire Afren, the company later went on to close the acquisition of a 40% working interest in OML 53, which is
located onshore in Imo State in the north eastern Niger
Delta, approximately 60km north of Port Harcourt. It also secured a 22.5% working interest in OML 55, which is located in the swamp to shallow water offshore areas in the South-Eastern Niger Delta in Nigeria. Seplat is the operator of both blocks, which are part of the recent divestment by Chevron. The Nigerian National Petroleum Corporation (NNPC) holds a 60 per cent interest in each of the two blocks.