Africa Oil Corp. AOIFF

New RBL

[Lonegaurdian19]

Per the PR:

At end of first quarter 2023 Prime had an outstanding reserves-based lending ("RBL") facility and a pre-export finance facility with an aggregate outstanding debt amount of $720.3 million ($360.2 million net to AOC). Prime will now complete the refinancing of both these facilities through the closing of a new RBL facility. This new facility is for a principal amount of $1.0 billion ($0.5 billion net to AOC) with a 6-year tenor. Prime also reported a cash position of $396.9 million ($198.5 millionnet to AOC) at end of first quarter 2023.


Do they need $1billion (500 M net) over 6 years?
 

interest rate has to be wild at the moment, I believe it's already LIBOR + X

Why not just refi the current outstanding if you can get a better deal than current? The duration aspect makes sense but not the amount, Prime could be sold at some point. No sense in levering up again

[DAGUY]

I agree. Unless there is a reason you need the extra money why borrow the extra, unless they are using it to finance the drilling in Nigeria? Otherwise it is a waste of money with high interest payments. 

[Ferryboy]

It was always the plan to try and get the money out of Nigeria.  Keith Hill mentioned it many times.  So I think they will receive a large dividend from Prime shortly.  Prime should still be able to finance ongoing drilling from FCF My speculation is that maybe, just maybe, they are finally going to buy that long awaited Producing Asset.  Why else do you need all that cash

[firstworld]

For new money peasant empire builders living large on SH capital while returning nothing to SH cash is king in high interest environment only when banks extend and pretend is not rampant lime it is now. If the govts and banks would stop intervening with hard core communist fical policy re borrower performance cash ki gs would have plenty of loser co debt crushed targets to biy cheap. As we enter