Africa Oil's Prime closes pre-export finance facility
29-10-2021 12:52:00 | by: Pie Kamau | hits: 1715 | Tags:

Africa Oil Corp. (Africa Oil) announced its investee company Prime Oil and Gas Cooperatief UA (Prime), has successfully signed and closed a pre-export finance facility (PXF Facility). 

Prime's PXF Facility is for an initial amount of $150 million. The PXF Facility is arranged by Shell Western Supply and Trading Limited and Africa Finance Corporation (PXF Lenders) and has a 7-year tenor, extending the duration of Prime's debt profile on very competitive cost terms that are comparable to its RBL facility.

The use of proceeds of the PXF Facility is to partly repay the RBL and other general corporate purposes. The PXF Facility can be increased to an amount up to $300 million, subject to the PXF Lenders' approval. Prime has satisfied all the conditions precedent with the drawdown of the $150 million expected by the end of this month.

Keith Hill, Africa Oil's President and CEO said, "Closing of the PXF facility marks an important milestone in Prime's efforts to extend the duration of its debt profile in a cost effective way. It is very encouraging to see the support from two strong lenders, building on Prime's excellent relationships with its RBL lenders. This reflects the quality of Prime's assets and operations."

Africa Oil also reports that as a result of the exercise of 432,000 stock options under the Company's stock option plan, the Company now has 474,361,451 common shares issued and outstanding with voting rights as of October 29, 2021.

Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio in Africa and Guyana.