VAALCO Energy, Inc. Secures New $190 Million | U.S. Markets

VAALCO Vitality has secured a $190 million revolving credit facility to assist its growth tasks and capital wants.

Quiver AI Abstract

VAALCO Vitality, Inc. has introduced a new revolving credit facility with an initial dedication of $190 million, expandable to $300 million, led by The Customary Financial institution of South Africa and supported by different banks. This facility replaces an present undrawn credit line and goals to supply short-term funds to complement money circulate because the company executes its investment packages in numerous areas over the subsequent few years. Key phrases embrace a six-year time period, rates of interest beginning at 6.5% plus SOFR, and a discount to six.0% as soon as a vital refurbishment project is accomplished. The power is secured by the company’s property in Gabon, Egypt, and Côte d’Ivoire. CEO George Maxwell emphasised the power’s significance for supporting the company’s growth initiatives.

Potential Positives

• VAALCO Vitality secured a new revolving credit facility with an initial dedication of $190 million and potential growth to $300 million, enhancing its financial flexibility.
• The company goals to make use of the power to fund vital natural growth tasks, indicating a robust investment strategy and confidence in future growth.
• The power is secured in opposition to beneficial property in Gabon, Egypt, and Côte d’Ivoire, underscoring the power and variety of VAALCO’s asset portfolio.

Potential Negatives

• Getting into a new revolving credit facility might point out potential liquidity considerations, because the company seeks to secure short-term funding to complement its money circulate.
• The rates of interest related to the new credit facility (6.5% plus SOFR, reducing to six.0% after project completion) might result in vital curiosity bills, impacting profitability.
• Charges on undrawn quantities (35% of margin each year for accessible quantities) and on unavailable quantities (20% of margin each year) might create extra financial burdens for the company.

FAQ

What’s the new credit facility introduced by Vaalco Vitality?

Vaalco Vitality introduced a new revolving credit facility with an initial dedication of $190 million, expandable to $300 million.

Who leads the new revolving credit facility?

The power is led by The Customary Financial institution of South Africa Restricted, Isle of Man Department.

What’s the goal of the credit facility for Vaalco?

The credit facility goals to supply short-term funding to complement money circulate and assist investment packages throughout Vaalco’s asset base.

What are the important thing phrases of Vaalco’s new credit facility?

The power has a six-year time period with rates of interest beginning at 6.5% and amortization starting on September 30, 2026.

Which banks participated in Vaalco’s new credit facility?

Collaborating banks embrace Rand Service provider Financial institution, The Mauritius Industrial Financial institution Restricted, and Glencore Vitality UK Ltd.

Disclaimer: That is an AI-generated abstract of a press release distributed by GlobeNewswire. The model used to summarize this release might make errors. See the complete release right here.

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• GEORGE W.M. MAXWELL (Chief Govt Officer) bought 4,500 shares for an estimated $21,060

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Full Launch

HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — VAALCO Vitality, Inc. (NYSE: EGY; LSE: EGY) (“Vaalco” or the “Company”) introduced that it has entered into a new revolving credit facility (“the new facility”) with an initial dedication of $190 million and the flexibility to grow to $300 million, led by The Customary Financial institution of South Africa Restricted, Isle of Man Department with different collaborating banks and financial companions. This new facility, which is subject to customary administrative conditional precedents, replaces the Firm’s present undrawn revolving credit facility that was offered by Glencore Vitality UK Ltd. The Firm organized the new facility primarily to supply short-term funding that could be needed from time-to-time to complement its internally generated money circulate and money stability because it executes its deliberate investment packages throughout its diversified asset base over the subsequent few years.

Key phrases embrace:

• Six-year time period with facility amortization to start on September 30, 2026;
• Preliminary dedication of $190 million with the flexibility to grow to $300 million by way of a $110 million accordion;
• Quantities drawn bear curiosity of 6.5% plus SOFR till the Côte d’Ivoire Floating Manufacturing Storage and Offloading vessel (“FPSO”) Dry Dock Refurbishment Undertaking is accomplished;
• Rate of interest will lower to six.0% plus SOFR as soon as the FPSO project is accomplished;
• Undrawn accessible quantities incur a charge of 35% of margin each year and undrawn unavailable quantities incur a charge of 20% of margin each year, with semi-annual borrowing base redeterminations; and
• Secured with Vaalco’s Gabon, Egypt and Côte d’Ivoire property.

“Closing this new credit facility will supplement our internally generated cash flow and cash balance to assist in funding our robust organic growth projects,” stated George Maxwell, Vaalco’s Chief Govt Officer. “With $190 million in initial commitment and the ability to grow to $300 million, this facility enables us to fund any short-term capital funding needs that may occur as we execute the significant growth projects across our assets over the next couple of years. We appreciate the support shown by our lending group which we believe affirms the strength of our diverse asset base. We are excited about the major projects that we have planned which are expected to deliver a step-change in organic growth across our portfolio.”

The Firm entered into the new facility with The Customary Financial institution of South Africa Restricted, Isle of Man Department because the lead bank on the power. Different contributors embrace Rand Service provider Financial institution, The Mauritius Industrial Financial institution Restricted and Glencore Vitality UK Ltd.

About Vaalco

Vaalco, based in 1985 and integrated beneath the legal guidelines of Delaware, is a Houston, Texas, USA based mostly, impartial power company with a numerous portfolio of manufacturing, development and exploration property throughout Gabon, Egypt, Côte d’Ivoire, Equatorial Guinea, Nigeria and Canada.

For Additional Info

Ahead Trying Statements

This press release consists of “forward-looking statements” within the which means of Part 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Part 21E of the Securities Trade Act of 1934, as amended, that are meant to be coated by the secure harbors created by these legal guidelines and different relevant legal guidelines and can also embrace “forward-looking information” within the which means of relevant Canadian securities law (collectively “forward-looking statements”). The place a forward-looking assertion expresses or implies an expectation or perception as to future occasions or outcomes, such expectation or perception is expressed in good religion and believed to have a cheap foundation. All statements different than statements of historic truth could also be forward-looking statements. The phrases “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or related phrases might establish forward-looking statements, however the absence of these phrases doesn’t imply that a assertion isn’t forward-looking. Ahead-looking statements on this press release might embrace, however should not restricted to, statements regarding (i) estimates of future drilling, manufacturing, gross sales and prices of buying crude oil, natural gasoline and natural gasoline liquids; (ii) expectations concerning Vaalco’s capability to successfully combine property and properties it has acquired as a outcome of the Svenska acquisition into its operations; (iii) expectations concerning future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated advantages to be derived therefrom; (iv) expectations concerning future acquisitions, investments or divestitures; (v) expectations of future dividends; (vi) expectations of future stability sheet power; and (vii) expectations of future equity and enterprise worth.

Such forward-looking statements are subject to dangers, uncertainties and different components, which might trigger precise outcomes to vary materially from future outcomes expressed, projected or implied by the forward-looking statements. These dangers and uncertainties embrace, however should not restricted to: dangers regarding any unexpected liabilities of Vaalco; the flexibility to generate money flows that, together with money readily available, can be enough to assist operations and money necessities; dangers regarding the timing and prices of completion for scheduled upkeep of the FPSO servicing the Baobab subject; and the dangers described beneath the caption “Risk Factors” in Vaalco’s 2023 Annual Report on Kind 10-Okay filed with the SEC on March 15, 2024 and subsequent Quarterly Studies on Kind 10-Q filed with the SEC.

Inside Info

This announcement incorporates inside data as outlined in Regulation (EU) No. 596/2014 on market abuse which is a component of UK home law by advantage of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Firm’s obligations beneath article 17 of MAR. The individual accountable for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Company Secretary of Vaalco.

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