MEZZANINE & PRE_PAYMENT FINANCE
US$ 42 million - 3-year financing
(Tunisia - Oil&Gas Company)
Lenders - undisclosed
Finance Advisor & Debt Arranger - Cofarco SAS
Topic raises a USD 28 MM mezzanine debt facility with the Africa Finance Corporation and a USD 14 MM prepayment facility with a large international trader
Acting as financial advisor, Cofarco provided financial counsel to TOPIC SA, an independent Tunisian energy Company, to raise a USD 28 mln mezzanine debt facility with the Africa Finance Corporation and a USD 14 MM prepayment facility with a large international trader. The financing will be applied to complete the development of and start production on the offshore Halk El Menzel field. This will be the first offshore development by a local company in Tunisia.
Cofarco, in co-ordination with TOPIC’s external 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;
- Undertaking sensitivity testing of the financial model;
- Preparing a teaser for the contemplated Transaction;
- Centralising questions and answers on TOPIC’s operations and business and the Transaction with the selected lenders;
- Working with the African Finance Corporation and TOPIC to create a tailored hedging product that optimised pricing and provided satisfactory coverage for the lender under the current market conditions;
- Advising on terms and conditions offered by the selected lenders and co-ordinating the legal documentation with the designated legal counsel until closing.