Oando Energy Resources Inc. (TO: OER) has received commitment letters for up to US $815 million of bank credit facilities, the company announced on Oct. 10.
Proceeds will be used for the purchase of its proposed acquisition of ConocoPhillips' (NYSE: COP) Nigerian upstream oil and gas business.
The credit facilities comprise:
Oando previously advised the market of the extension of the outside date for the completion of the ConocoPhillips acquisition to Nov. 30. As a result of the termination of the agreement to purchase Phillips Brass Ltd., the net purchase price payable to complete the ConocoPhillips acquisition was reduced to US $1.22 billion after giving effect to the termination of the agreement to purchase Phillips Brass Ltd., adjustments as of the date hereof and the deposit already paid to ConocoPhillips.
The RBL and senior loan remain subject to various closing conditions, including execution of definitive documentation.
"The receipt of the commitment letters represents an important step towards closing the ConocoPhillips acquisition and concludes the second stage in our financing plan, having initially paid a US $435 million deposit to ConocoPhillips," Pade Durotoye, Oando CEO, said in the release. "We have sought to optimally finance this acquisition to retain maximum value for our shareholders. We will now proceed to the final stage of concluding the financing required for completion of the ConocoPhillips acquisition."
Oando Energy Resources Inc. acquires interests in oil and natural gas properties in Canada and West Africa. The company has offices in Calgary, London, and Lagos, Nigeria.