VAALCO converts IFC credit facility to term loan

VAALCO Energy Inc. (NYSE:EGY) has executed an amended and restated loan agreement with the International Finance Corporation (IFC), the lender under the company’s credit facility, to convert the existing $15 million balance under the revolving facility to a term loan.  The new agreement provides for quarterly principal and interest payments through June 30, 2019 at a rate of LIBOR plus 5.75%. The loan is secured by VAALCO’s offshore Gabon assets and related inventory.  

VAALCO has the option to request to draw up to an additional $5 million from the IFC between now and December 31, 2016, with any such drawn amounts to be amortized through June 30, 2018. Quarterly principal payments on the entire term loan, including the $15 million converted amount, will begin after any additional funds are drawn, or VAALCO makes a determination it has no need for the additional funding; interest is paid quarterly throughout the entire term of the loan.  All covenants under the agreement remain substantially the same except that the net debt to EBITDAX limitation has been raised from three times EBITDAX to five times EBITDAX through the end of 2016, and then reverts back to three times effective for the quarter ending March 31, 2017. There are no semi-annual redeterminations required under the new fixed term agreement.

VAALCO Energy Inc. is a Houston-based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil. The company's properties and exploration acreage are located primarily in Gabon, Equatorial Guinea and Angola in West Africa.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...