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