Let me Breakdown the Nigerian Deal
Don't be misled by the term "lock-box" which just means "fixed price"... The agreed base purchase price of $1.407 billion, is on a cash and debt basis as of the effective date of 1st January 2018 (the Effective Date). A deferred payment of up to $123 million may be due to the Seller...POGBV (i.e. the Nigerian Deal) had an existing reserve-based lending facility, with a syndicate of international banks and commitments of $1.245 billion which has now been increased to $1.825 billion...On November 1, 2019, the Company announced that it has agreed the terms of a credit committee approved term sheet with BTG Pactual ("BTG") for a guarantee and loan facility ("Bridge Loan") of up to US$250 million. It is anticipated that the Bridge Loan, together with the "available cash", will provide the necessary funds for the Company to cover its POGBV deal completion payments and 2020 budget...Adding up, 50% of the US$1.8 billion Existing Credit extended to POGBV (Petrobras loan facility will be assumed by the buyer AOI) will come from POGBV line of credit facility or $900 million to be drawn down by AOI plus $250 million bridge loan and $350 million cash in bank totaling $1.4 billion cost of the Nigerian Deal. In other words, AOI will have to incur debts of $1.15 billion to close the deal.