By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Oando Plc on Friday announced that Oando Energy Resources Inc. (OER) has paid a total of $550 million as deposit to acquire ConocoPhillips.
The company in statement to the Nigerian stock exchange (NSE) said it has increased its deposit with ConocoPhilips by $25 million on May 30, 2014, in pursuant to the terms of its executed amendment agreement with ConocoPhilips dated April 30, 2014 as disclosed on April 30, 2014.
‘’OER has in total paid a $550 million deposit to ConocoPhillips for this acquisition to date’’ it said.
Also, Oando said it has extended the availability period of the US$450 million seniour secured facility agreement arranged by a group of international banks including Standard Chartered Bank (acting as Facility Agent and Security Agent), BNP Paribas and Standard Bank of South Africa Limited (the “RBL”) to August 31, 2014.
According to the company, the RBL is a 5.5 year facility which amortises quarterly with an annual interest rate of LIBOR plus 8.5%.
Oando affirmed that proceeds from the RBL are intended to be used to fund a portion of the purchase price for the ConocoPhillips Acquisition.
It said all terms and conditions under the initial executed binding documentation remain unchanged.
