NG Energy International entered into a definitive credit and guarantee agreement with Macquarie Group for a financing of up to $100 million of which $50 million is committed funding. NG Energy International and its wholly-owned subsidiaries, Bochica Investment Holdings, Pentanova BVI and MKMS Enerji Anonim Sirketi will guarantee the financing as guarantors.
The financing is secured by a first priority lien over all the assets of NG Energy International, a trust formed in Colombia and the guarantors and matures on Dec. 29, 2028. The net proceeds of the financing and a related LC facility for up to $13.6 million under discussion will be used to: (i) simplify the company’s capital structure; (ii) optimize the company’s balance sheet; (iii) reduce the overall leverage of the company; (iv) guarantee work commitments under the company’s contracts with midstream partners and with the Agencia Nacional de Hidrocarburos in Colombia; and (v) for general corporate purposes as the company continues to develop its asset base.
Macquarie has made available $50 million of committed funding and an additional $50 million in uncommitted funding under an accordion feature.
On the date of closing of the financing, $40 million of the committed portion of the financing will be advanced to NG Energy International, with the remaining $10 million of the committed portion of the financing to be advanced to the company in a second advance, on a date to be determined pursuant to the terms of the credit agreement.
The company intends to use the net proceeds of the first two advances as follows:
The first two advances will accrue interest at a rate equal to term SOFR plus a maximum of 8.5% per annum with a step-down margin grid based on performance.
“The commitment from Macquarie after a thorough review of the technical, financial and legal components of our business is a significant milestone for our company as we enter this next phase of growth and cash flow generation,” Jorge Fonseca, CFO of NG Energy International, said. “We are very pleased to have secured the financing to support our industry leading growth trajectory, and above all, the financing provides the company with substantial financial flexibility today, and into the future, as we have deleveraged the balance sheet, optimized our capital structure and now have obtained the necessary CAPEX to support the accelerated growth of our assets. I would like to thank Macquarie and all the members of our team for their support throughout the duration of this process.”
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