Modupe Gbadeyanka
By Modupe Gbadeyanka
Leading Nigerian oil and gas firm listed on both the Nigeria Stock Exchange (NSE) and the London Stock Exchange (LSE), Seplat Petroleum Development Company Plc (Seplat), has announced successfully concluding a one year extension of its revolving credit facility (RCF) until December 31, 2018.
A statement issued on Monday by the company disclosed that the extension has been successfully amended to amortise the remaining outstanding principal balance of $150 million in equal instalments over five quarters commencing from the fourth quarter of 2017.
The current three year RCF was due to expire at the end of 2017 before the extension.
Overall, Seplat’s aggregate indebtedness under its Term Loan and RCF has reduced by $365 million from its peak in Q1 2015 of $1 billion to the current balance at the end of June 2017 of $635 million, which the firm said was a significant deleveraging of the balance sheet particularly in exceptionally difficult trading conditions over the past 18 months.
“We are pleased to announce the extension to our revolving credit facility. The approval to extend and strong demand within our core lending group, which saw around 30 percent oversubscription, demonstrates Seplat’s strong underlying business fundamentals and is further testament to the strength of our relationship with our continuing and new lenders,” Seplat’s Chief Financial Officer, Mr Roger Brown, commented.
“The amended facility, and recent resumption of exports via the Forcados terminal, will enable the business to rebuild cash on its balance sheet as we seek to strengthen our capital structure to ensure a strong platform for future growth,” he added.
It was disclosed in Monday’s press release that the amended facility has been provided by Citibank N.A. London Branch, Citibank Nigeria Limited, The Mauritius Commercial Bank Plc, Natixis, Nedbank Limited London Branch, Nomura International Plc, FirstRand Bank Limited acting through its Rand Merchant Bank Division, Stanbic IBTC Bank Plc, The Standard Bank of South Africa Limited and Standard Chartered Bank.
Seplat Plc is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria. It is pursuing a Nigeria focused growth strategy and is well-positioned to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds.
