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STRUCTURED FINANCE FACILITY
US$20-30 million / 5-year
(Nigeria - Oil Producer)
Lenders - 2 syndicates of 12 banks in total
Financial Arranger - Cofarco SAS
January 2015
Cofarco advises Seplat on $1 billion secured term and revolving credit facilities

Acting as an independent advisor, Cofarco provided financial counsel to Seplat Petroleum Development Company Plc (“Seplat”), a leading Nigerian indigenous oil and gas company listed on both the Nigeria Stock Exchange and London Stock Exchange to raise US$1 billion debt re-financing.

Such Facility, which successfully closed on 15 January 2015, purported to refinance Seplat’s existing debt facilities with a new US$700 million seven year secured term facility and US$300 million three year secured revolving credit facility.  The seven year facility also includes an option for Seplat to upsize the facility by up to an additional US$700 million for qualifying acquisition opportunities.

The US$700 million seven year secured term facility has been closed with a consortium of banks in Nigeria comprising First Bank of Nigeria Limited, Stanbic IBTC Bank Plc, United Bank for Africa Plc and Zenith Bank Plc, is repayable quarterly from end June 2015 and has a margin of LIBOR +8.75% per annum.  The US$300 million three year revolving credit facility has been closed with a consortium of eight international banks comprising Bank of America Merrill Lynch, Citibank, JP Morgan Limited, Natixis, Nedbank Limited, Rand Merchant Bank, Standard Bank and Standard Chartered Bank, has a quarterly reduction schedule from end December 2015 and has a margin of LIBOR +6.00% per annum.  Proceeds from draw down on these new facilities has been used to repay the Company’s existing debt facilities (totaling US$552 million), and will also be used to fund new business and development opportunities and for general corporate purposes.

Under the mandate granted by Seplat, Cofarco, in co-ordination with Seplat’s outside and in-house advisors and team, was responsible for:

  • Reviewing existing financing arrangements and the projected funding needs and advising on the relevant financing plan and strategy;
  • Finding alternative funding sources and targeting suitable specialised lenders;
  • Assisting in preparing a financial model and undertaking sensitivity testing of the financial model;
  • Preparing a teaser and a tentative term-sheet for the contemplated Transaction;
  • Approaching and presenting jointly with Seplat the Transaction to the selected lenders;
  • Centralising questions and answers on Seplat’s operations and business and the Transaction with the selected lenders;
  • Advising on terms and conditions offered by the selected lenders and co-ordinating the legal documentation with the Seplat’s designated legal counsel until closing;