First Bank, Ecobank, oth­ers part­ner on N26 bn fa­cil­ity for Seven En­ergy

Daily Trust - - NEWS - By Hamisu Muham­mad

Seven En­ergy In­ter­na­tional Limited and its sub­sidiary Ac­cu­gas Limited closed a US$170 mil­lion (N26 bil­lion) 2 5.5-year medium-term ac­qui­si­tion fi­nance fa­cil­ity with FBN Bank (UK) Limited and Ecobank Nigeria Limited on Mon­day 31 March 2014.

FBN Cap­i­tal Limited acted as Struc­tur­ing Bank, sole Ini­tial Man­dated Lead Ar­ranger, Fi­nan­cial Modelling Bank and Global Fa­cil­ity Co­or­di­na­tor.

Aluko and Oye­bode acted as lenders le­gal coun­sel, Royal Haskon­ingDHV Ned­er­land BV rep­re­sented the lenders on en­vi­ron­men­tal / tech­ni­cal due dili­gence mat­ters. UUBO and Ad­dle­shaw God­dard acted as the Bor­rower’s lo­cal and in­ter­na­tional le­gal coun­sels re­spec­tively.

The fa­cil­ity part-fi­nances the ac­qui­si­tion of the en­tire is­sued share cap­i­tal of East Hori­zon Gas Com­pany Limited (“EHGC”) for a to­tal con­sid­er­a­tion of up to US$250 mil­lion.

EHGC was es­tab­lished by Oando Plc with the in­ten­tion of con­struct­ing and op­er­at­ing an 18-inch, 128-km gas pipe­line that con­nects with the Obig­boAlscon pipe­line at Ukana­fun to sup­ply gas to an in­dus­trial off­taker lo­cated in Mfamos­ing, Cross River State, and to meet the needs of other in­dus­trial users in the Cal­abar re­gion.

Seven En­ergy’s ac­qui­si­tion of EHGC is in line with its strate­gic plans to ex­pand its gas in­fra­struc­ture as­sets in the south east Niger Delta.

Com­ment­ing

on

the trans­ac­tion, Bruce Bur­rows, Chief Fi­nan­cial Of­fi­cer, Seven En­ergy, com­mended the Lenders, FBN Bank (UK) Limited and Ecobank Nigeria Limited, for their sup­port, and in par­tic­u­lar, their ded­i­ca­tion to en­sure that the com­ple­tion of the EHGC ac­qui­si­tion process was in line with the spon­sors’ timetable.

Bur­rows noted FBN Cap­i­tal’s role, par­tic­u­larly in work­ing closely with Seven En­ergy, the Lenders and the var­i­ous in­de­pen­dent con­sul­tants in con­clud­ing the trans­ac­tion.

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