Nigeria: Oando Converts U.S.$98 Million Loan to Equity in Subsidiary

25 August 2014

Oando Plc has converted $98 million loan to its subsidiary listed in Toronto Stock Exchange (TSX), Oando Energy Resources (OER) to equity, increasing its stake from 93.2 per cent to 93.8 per cent. Oando, in notification to the Nigerian Stock Exchange (NSE) on Friday said the loan is part of the $1.2billion facility it gave to OER for the, explaining that $ 41 million of principal remains outstanding under the Oando Loan and an aggregate principal amount of approximately $ 292 million remains available to be drawn. According to the company, OER has issued 68,144,115 units to Oando Resources Limited , a subsidiary of Oando Plc, as repayment of amounts outstanding under the loan at a conversion price of Canadian dollar$1.57 per unit.

"Each unit consists of one common share of the company and one-half of one warrant to purchase an additional common share at a price of CAD$ 2.00 per common share up until 30 July 2016, a 24 month period from which the company closed the acquisition of the Nigerian upstream oil and gas business of ConocoPhillips. The terms of the units, other than the denomination of the conversion price and exercise price in United States dollars, have the same terms as the units issued to third party investors and Oando Resources on previous tranches," the company said.

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