26 April 2015, Abuja – One of Nigeria’s leading indigenous oil and gas exploration and production company listed on both the Nigerian and London Stock Exchanges, Seplat Petroleum Development Company Plc, has closed a new $700 million seven-year secured term facility which includes an option to upsize the facility by at least an additional $700 million for qualifying acquisition opportunities.
The facility was closed with a consortium of banks in Nigeria with FBN Capital acting as the structuring bank.
The new facility, alongside a new $300 million three-year secured revolving credit facility provided concurrently by international banks, refinanced Seplat’s existing debt portfolio to ensure a robust capital structure and strategically position the company for future oil and gas acquisition opportunities in Nigeria.
Commenting on the transaction, the chief executive officer of Seplat, Austin Avuru, said, “We are pleased to have extended our banking relationships with several existing and new lenders, both Nigerian and international. This successful re-financing, which commenced several months ago, significantly enhances our already robust capital structure and underscores the quality of our asset base.”
Managing director of FBN Capital Limited Kayode Akinkugbe, said, “FBN Capital is very proud of the instrumental role it played in assisting Seplat to structure the local financing to optimize its capital structure.”
He went further to state that the FBN Holdings Group is delighted to assist the growth of indigenous oil & gas companies within the sector and will continue to deploy its extensive debt arranging experience and structuring expertise in executing complex and robust transactions in record time.
Speaking on the transaction, director and head Debt Solutions, FBN Capital Limited, Patrick Mgbenwelu, said, “We appreciate the responsibility and trust Seplat has placed with FBN Capital to assist in structuring the local refinancing of Seplat’s existing debt portfolio. Given our role as Technical Bank, FBN Capital remains committed to ensuring the robustness of the entire local financing and look further to strengthening this relationship and to support Seplat in realizing their future financing goals and objectives.”
*Bukola Idowu – Leadership