Eroton pays back $398 million dollar debt
Nigerian oil production company, Eroton has refinanced a $398 million debt, which is a condition given by its major investor; San Leon energy before allowing Eroton to release dividends to its shareholders.
Eroton operates the OML 18 project onshore Nigeria, in which British-based San Leon holds a 9.7% interest.
In a recent statement released by San Leon, the company said the facility was replaced by a new, same amount reserves-based lending facility with Guarantee Trust Bank, with repayment date extended to late-2025 from mid-2021. However, the refinanced interest rate is marginally higher, at 11% compared to 10% previously.
“The Company first highlighted on 7 September 2017, and subsequently since, that depositing three future quarterly RBL repayments into a specified Debt Service Reserve Account (“DSRA”) was one of the conditions needing to be satisfied before the RBL lenders would allow a distribution of dividends from Eroton to its shareholders (of which the Company is an indirect shareholder),” the statement reads
“The Company has now been informed by Eroton that the RBL has been successfully refinanced. With a final repayment of $398 million, the RBL has been repaid in full and replaced by a new reserves based lending facility with Guarantee Trust Bank (the “GT Bank RBL”), ” the British company added
Commenting on the development, San Leon’s Chief Executive Oisin Fanning. said: “I am delighted with the terms secured by Eroton for the RBL restructuring, and the impact which Eroton expects this to have,”
“This is a further material step in addressing previously identified operational and financing issues at OML 18 and follows the recent announcements of new well drilling, and of NNPC (the Nigerian National Petroleum Corporation) paying most of their cash call arrears.” Fanning added