VAALCO Energy Secures $190M Credit Facility, Expands Funding for Global Oil and Gas Investments

Author: Benzinga Newsdesk | March 05, 2025 02:43am

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 $190 million and the ability to grow to $300 million, led by The Standard Bank of South Africa Limited, Isle of Man Branch with other participating banks and financial partners. This new facility, which is subject to customary administrative conditional precedents, replaces the Company's existing undrawn revolving credit facility that was provided by Glencore Energy UK Ltd. The Company arranged the new facility primarily to provide short-term funding that may be needed from time-to-time to supplement its internally generated cash flow and cash balance as it executes its planned investment programs across its diversified asset base over the next few years.

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 of 20% of margin per annum, with semi-annual borrowing base redeterminations; and
• Secured with Vaalco's Gabon, Egypt and Côte d'Ivoire assets.

Posted In: EGY