VAALCO Announces Conversion of IFC Credit Facility to Term Loan
07 July 2016 - 6:45AM
VAALCO Energy, Inc. (NYSE:EGY) today announced that it 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.
The Company 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.
Steve Guidry, the Company’s Chief Executive
Officer, commented: “We are very pleased with our new arrangement
with the IFC which provides us increased certainty and financial
flexibility. One of the goals in our ongoing strategic review
process was to evaluate alternative financing options available to
us. This mutually beneficial arrangement with the IFC serves as our
first step in meeting that objective.”
About VAALCO
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.
This news release includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements are those concerning VAALCO's plans,
expectations, and objectives for liquidity and capital resources,
future drilling, completion, workover and other operations and
activities. All statements, other than statements of historical
facts, included in this release that address activities, events or
developments that VAALCO expects, believes or anticipates will or
may occur in the future are forward-looking statements. These
statements may include expected capital expenditures, future
drilling plans, prospect evaluations, liquidity, negotiations with
governments and third parties, expectations regarding processing
facilities, and reserve growth. These statements are based on
assumptions made by VAALCO based on its experience, perception of
historical trends, current conditions, expected future developments
and other factors it believes are appropriate in the circumstances.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond VAALCO's control. These
risks include, but are not limited to, oil and gas price
volatility, inflation, general economic conditions, the Company's
success in discovering, developing and producing reserves, lack of
availability of goods, services and capital, environmental risks,
drilling risks, foreign operational risks, and regulatory changes.
These and other risks are further described in VAALCO's annual
report on Form 10-K for the year ended December 31, 2015,
subsequent quarterly reports on Form 10-Q, and other reports filed
with the SEC. Investors are cautioned that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. VAALCO disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
Investor Contact
Al Petrie
Investor Relations Coordinator
713-543-3422
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