New Age (African Global Energy) Ltd (‘New Age’), a private African-focussed oil and gas company, has closed a US$425 million senior secured loan facility and has drawn US$350 million on 28 June 2016. The facility, provided by a consortium of five lenders, was led by EIG Global Energy Partners and the Africa Finance Corporation. New Age has recently achieved first oil in a number of new developments, including its Aje field in Nigeria, the Litchendjili and Nene marine fields offshore Congo-Brazzaville and Shewashan in Iraqi-Kurdistan. The proceeds of the facility will be used to further expand production activities in these regions and develop other oil and gas fields in the portfolio.
Commenting today, Steve Lowden, Chief Executive Officer, said:
“We are pleased to have concluded this debt facility with a group of highly respected lenders in a difficult market. Our developments work at low break-even prices, offering good returns even in the prevailing commodity environment, and have attracted commensurate financing. So far in 2016, we have managed to secure some $600million of debt and equity, giving New Age an exceptionally strong balance sheet at the bottom of the commodity cycle. Moreover, this facility ensures the Company is fully funded to deliver sanctioned and planned capex projects through to free cash flow.”
Evercore acted as financial adviser to New Age on this transaction