VAALCO Energy, Inc. Enters Into New $300 Million Revolving Credit Facility
VAALCO Energy (NYSE: EGY) has secured a new revolving credit facility with an initial commitment of $190 million, expandable to $300 million through a $110 million accordion. The facility is led by The Standard Bank of South Africa with participation from Rand Merchant Bank, The Mauritius Commercial Bank , and Glencore Energy UK
Key terms include a six-year term with amortization beginning September 30, 2026. The facility bears interest at 6.5% plus SOFR until the completion of the Côte d'Ivoire FPSO Dry Dock Refurbishment Project, after which it decreases to 6.0% plus SOFR. The facility is secured by VAALCO's assets in Gabon, Egypt, and Côte d'Ivoire.
This new facility replaces the company's existing undrawn revolving credit facility from Glencore Energy UK and aims to supplement internally generated cash flow for planned investment programs across its diversified asset base.
VAALCO Energy (NYSE: EGY) ha ottenuto una nuova linea di credito revolving con un impegno iniziale di 190 milioni di dollari, ampliabile fino a 300 milioni di dollari tramite un accordo di 110 milioni di dollari. La linea è guidata da The Standard Bank of South Africa con la partecipazione di Rand Merchant Bank, The Mauritius Commercial Bank e Glencore Energy UK.
I termini chiave includono un periodo di sei anni con ammortamento che inizia il 30 settembre 2026. La linea di credito prevede un tasso d'interesse del 6,5% più SOFR fino al completamento del Progetto di Ristrutturazione del Dry Dock FPSO della Costa d'Avorio, dopo di che scenderà al 6,0% più SOFR. La linea di credito è garantita dagli asset di VAALCO in Gabon, Egitto e Costa d'Avorio.
Questa nuova linea sostituisce la linea di credito revolving non utilizzata esistente della società da Glencore Energy UK e mira a integrare il flusso di cassa generato internamente per i programmi di investimento pianificati su tutta la sua base di asset diversificata.
VAALCO Energy (NYSE: EGY) ha asegurado una nueva línea de crédito revolving con un compromiso inicial de 190 millones de dólares, ampliable a 300 millones de dólares a través de un acuerdo de 110 millones de dólares. La línea está liderada por The Standard Bank of South Africa con la participación de Rand Merchant Bank, The Mauritius Commercial Bank y Glencore Energy UK.
Los términos clave incluyen un plazo de seis años con amortización que comienza el 30 de septiembre de 2026. La línea de crédito tiene un interés del 6.5% más SOFR hasta la finalización del Proyecto de Restauración del Dry Dock FPSO de Costa de Marfil, después de lo cual disminuirá al 6.0% más SOFR. La línea de crédito está garantizada por los activos de VAALCO en Gabón, Egipto y Costa de Marfil.
Esta nueva línea reemplaza la línea de crédito revolving no utilizada existente de la compañía de Glencore Energy UK y tiene como objetivo complementar el flujo de efectivo generado internamente para los programas de inversión planificados en toda su base de activos diversificada.
VAALCO Energy (NYSE: EGY)는 1억 9천만 달러의 초기 약정을 갖춘 새로운 회전 신용 시설을 확보했으며, 1억 1천만 달러의 추가 약정을 통해 3억 달러로 확대할 수 있습니다. 이 시설은 The Standard Bank of South Africa가 주도하며, Rand Merchant Bank, The Mauritius Commercial Bank 및 Glencore Energy UK가 참여하고 있습니다.
주요 조건으로는 6년의 기간이 있으며, 2026년 9월 30일부터 상환이 시작됩니다. 이 시설은 Côte d'Ivoire FPSO 드라이독 리노베이션 프로젝트가 완료될 때까지 6.5%의 이자율에 SOFR를 더한 금리를 적용하며, 이후 6.0%의 이자율에 SOFR를 더한 금리로 감소합니다. 이 시설은 VAALCO의 가봉, 이집트 및 Côte d'Ivoire 자산으로 담보됩니다.
이 새로운 시설은 Glencore Energy UK의 기존 미사용 회전 신용 시설을 대체하며, 다양화된 자산 기반의 계획된 투자 프로그램을 위해 내부에서 생성된 현금 흐름을 보충하는 것을 목표로 합니다.
VAALCO Energy (NYSE: EGY) a sécurisé une nouvelle ligne de crédit revolving avec un engagement initial de 190 millions de dollars, extensible à 300 millions de dollars grâce à un accord de 110 millions de dollars. La ligne est dirigée par The Standard Bank of South Africa avec la participation de Rand Merchant Bank, The Mauritius Commercial Bank et Glencore Energy UK.
Les conditions clés comprennent une durée de six ans avec un amortissement commençant le 30 septembre 2026. La ligne de crédit porte un intérêt de 6,5 % plus SOFR jusqu'à l'achèvement du Projet de Rénovation du Dry Dock FPSO de la Côte d'Ivoire, après quoi il diminue à 6,0 % plus SOFR. La ligne de crédit est garantie par les actifs de VAALCO en Gabon, en Égypte et en Côte d'Ivoire.
Cette nouvelle ligne remplace la ligne de crédit revolving non utilisée existante de l'entreprise de Glencore Energy UK et vise à compléter le flux de trésorerie généré en interne pour les programmes d'investissement prévus sur l'ensemble de sa base d'actifs diversifiée.
VAALCO Energy (NYSE: EGY) hat eine neue revolvierende Kreditfazilität mit einem anfänglichen Engagement von 190 Millionen US-Dollar gesichert, die durch ein 110 Millionen US-Dollar großes Akkordeon auf 300 Millionen US-Dollar erweitert werden kann. Die Fazilität wird von der Standard Bank of South Africa geleitet, mit Beteiligung von Rand Merchant Bank, The Mauritius Commercial Bank und Glencore Energy UK.
Wichtige Bedingungen umfassen eine Laufzeit von sechs Jahren, mit einer Amortisation, die am 30. September 2026 beginnt. Die Fazilität trägt Zinsen von 6,5 % plus SOFR bis zum Abschluss des Côte d'Ivoire FPSO Trockendock-Renovierungsprojekts, nach dem der Zinssatz auf 6,0 % plus SOFR sinkt. Die Fazilität ist durch die Vermögenswerte von VAALCO in Gabun, Ägypten und Côte d'Ivoire gesichert.
Diese neue Fazilität ersetzt die bestehende ungenutzte revolvierende Kreditfazilität des Unternehmens von Glencore Energy UK und soll den intern generierten Cashflow für geplante Investitionsprogramme in der gesamten diversifizierten Vermögensbasis ergänzen.
- New $190M credit facility with potential expansion to $300M
- Interest rate reduction from 6.5% to 6.0% plus SOFR after FPSO project completion
- Six-year term providing long-term financial flexibility
- Facility backed by diversified assets across three countries
- Higher initial interest rate of 6.5% plus SOFR
- Facility requires asset collateralization
- Amortization terms may impact future cash flows starting 2026
Insights
VAALCO's new
The facility's structure is notably favorable with amortization delayed until September 2026, giving VAALCO ample time to deploy capital and begin generating returns before repayment obligations accelerate. The interest rate terms -
What's particularly significant is that this new facility replaces an existing undrawn facility, indicating this represents potential rather than immediate leverage. The syndicate of lenders, including Standard Bank of South Africa, Rand Merchant Bank, Mauritius Commercial Bank, and Glencore, signals strong institutional confidence in VAALCO's asset base and business strategy.
The geographical diversification of the secured assets (Gabon, Egypt, and Côte d'Ivoire) demonstrates the lenders' comfort with VAALCO's portfolio approach. For a company with
HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) announced that it has entered into a new revolving credit facility (“the new facility”) with an initial commitment of
Key terms include:
- Six-year term with facility amortization to begin on September 30, 2026;
- Initial commitment of
$190 million with the ability to grow to$300 million through a$110 million accordion; - Amounts drawn bear interest of
6.5% plus SOFR until the Côte d’Ivoire Floating Production Storage and Offloading vessel ("FPSO") Dry Dock Refurbishment Project is completed; - Interest rate will decrease to
6.0% plus SOFR once the FPSO project is completed; - Undrawn available amounts incur a fee of
35% of margin per annum and undrawn unavailable amounts incur a fee of20% of margin per annum, with semi-annual borrowing base redeterminations; and - Secured with Vaalco’s Gabon, Egypt and Côte d’Ivoire assets.
“Closing this new credit facility will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects,” said George Maxwell, Vaalco’s Chief Executive Officer. “With
The Company entered into the new facility with The Standard Bank of South Africa Limited, Isle of Man Branch as the lead bank on the facility. Other participants include Rand Merchant Bank, The Mauritius Commercial Bank Limited and Glencore Energy UK Ltd.
About Vaalco
Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria and Canada.
For Further Information
| Vaalco Energy, Inc. (General and Investor Enquiries) | +00 1 713 543 3422 |
| Website: | www.vaalco.com |
| Al Petrie Advisors (US Investor Relations) | +00 1 713 543 3422 |
| Al Petrie / Chris Delange | |
| Buchanan (UK Financial PR) | +44 (0) 207 466 5000 |
| Ben Romney / Barry Archer | Vaalco@buchanan.uk.com |
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and may also include “forward-looking information” within the meaning of applicable Canadian securities law (collectively "forward-looking statements"). Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding Vaalco's ability to effectively integrate assets and properties it has acquired as a result of the Svenska acquisition into its operations; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future dividends; (vi) expectations of future balance sheet strength; and (vii) expectations of future equity and enterprise value.
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s 2023 Annual Report on Form 10-K filed with the SEC on March 15, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the SEC.
Inside Information
This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.
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