Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, is pleased to announce that, further to the operational update announced on 24 May 2018, its wholly-owned subsidiary Gaz du Cameroun S.A. (“GDC”) has restructured its outstanding debt balance with BGFIBank Cameroon S.A. (“BGFI”), effective from 15 July 2018.
The initial debt facility, entered into on 4 April 2016, was for an amount of XAF 15 billion (approximately $26 million). The facility was fully drawn down in 2017 and, having enjoyed six months of interest only repayments, GDC has progressed to making monthly principal and interest instalments. The amount outstanding as at the date of restructuring was $20.5 million.
The material terms of the restructured debt facility are as follows:
- Loan tenure of five years from the date of the restructuring, which is 15 July 2018;
- An initial 12-month interest only period, then principal and interest thereafter;
- Interest on the debt to remain at Cameroon Bank Base rate of 9% less 1.85%, currently 7.15% per annum;
- Security is unchanged, namely a pledge over certain receivables, partially assigned insurance contracts and a letter of comfort from the Company; and
- No financial covenants in addition to those agreed in connection with the initial facility.
Andrew Diamond, Finance Director said, “The restructuring of the BGFI debt facility is a substantial vote of support from our banker and a strong endorsement of our business in Cameroon.”
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