This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oando Energy Resources Receives Signed Commitment Letters For Up To US$815 Million Of Term Bank Financing Towards The Acquisition Of ConocoPhillips' Nigerian Upstream Oil And Gas Business

CALGARY, Alberta, October 10, 2013 /PRNewswire/ --

Oando Energy Resources Inc. (" OER" or the " Company") (TSX:OER), a company focused on oil exploration and production in Nigeria, today announced that it has received commitment letters for up to US$815 million of bank credit facilities which will be largely applied towards payment of the purchase price in respect of its proposed acquisition of ConocoPhillips' (" COP") Nigerian upstream oil and gas business (the " COP Acquisition").

The credit facilities comprise:

  1. up to US$465 million Reserve Based Lending Facility, internationally placed and led by BNP Paribas, Standard Bank and Standard Chartered Bank (" RBL"); and
  2. a US$350 million Senior Secured Loan, jointly arranged locally in Nigeria, by FBN Capital and FCMB Capital Markets (" Senior Loan").

OER, in its September 16, 2013 press release, advised the market of the extension of the outside date for the completion of the COP Acquisition to November 30, 2013 (" Outside Date"). As a result of the termination of the agreement to purchase Phillips Brass Limited ("PBL") the net purchase price payable to complete the COP Acquisition was reduced to approximately US$1.22 billion (after giving effect to the termination of the agreement to purchase PBL, adjustments as of the date hereof and the deposit already paid to COP).

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 COP Acquisition and concludes the 2 nd stage in our financing plan, having initially paid a US$435 million deposit to COP," said PadeDurotoye, CEO of Oando Energy Resources. "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 COP Acquisition."

Forward Looking Statements:

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,981.44 -1.15 -0.01%
S&P 500 1,981.39 +2.48 0.13%
NASDAQ 4,463.33 +18.4210 0.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs