March 4, 2015

Accugas Limited

Deal Description:

FBN Capital Limited was mandated by Seven Energy International Limited in 2013 to act as the Mandated Lead Arranger in the structuring and raising of a US$170 Acquisition Finance Facility.

The facility was used to part-finance the acquisition of 100% shareholding in East Horizon Gas Company Limited (EHGC). EHGC was incorporated by Oando Plc with the specific intention of developing and operating an 18-inch, 128km natural gas pipeline that connects with the Obigbo-Alscon pipeline at Ukanafun to supply gas to the UNICEM cement plant in Mfamosing, Cross River State and to meet the need of other industrial users in the Calabar region. The acquisition of EHGC is in line with SEIL’s strategic plans for expanding its gas transmission and distribution network assets in the southeast Niger Delta region to supply the regional demand centres of Aba, Calabar and Port Harcourt.

ACCUGAS Limited

Accugas V US$385 Million Senior Secured Term Facility

Deal Description:

FBN Capital Limited was mandated by Seven Energy International Limited (“SEIL”) in March 2016 to act as Financial Adviser for the restructuring of the Accugas IV Term Facility (the “Facility”) for Accugas Limited (“Accugas”) – a wholly owned subsidiary of SEIL. The restructuring involves three components: (i) re-sculpting of the amortization profile of the Facility (ii) extension of the Facility tenor (iii) conversion of all or a portion of the Facility from USD to Naira.

Accugas focuses on sales and marketing, processing and distribution of gas to the domestic Nigerian market. FBN Capital Limited recently completed the first phase of the restructuring which involves resculpting the amortization profile of Accugas IV from September 2016 – December 2017. The Facility is held by a syndicate of seven (7) banks: five Nigerian Banks and two lenders incorporated in the United Kingdom) all of whom provided consent to the enable the reduced amortization profile take effect from September 2016.

ACCUGAS Limited

Accugas IV (October 2015).

Deal Description:

In March 2015, Seven Energy International Limited (“SEIL”) appointed FBNQuest as Initial Mandated Lead Arranger to raise the Accugas (IV) Facility.  The Accugas IV Facility includes the following;

  1. the refinancing of Accugas Limited’s (“Accugas”) existing USD225 Million Accugas II and USD160 Million Accugas III Facilities via a USD385 Million Refinancing Facility (“Refinancing Facility”) and;
  2. the raising of an additional USD60 Million Term Facility (“Accordion Facility”) and USD50 Million (Naira Equivalent) Working Capital Facility (“WCF”).

SEIL is an indigenous Nigerian oil and gas exploration, development, production and distribution company with a vision to be the leading supplier of gas to the domestic market for power generation and industrial consumption. SEIL’s wholly-owned midstream business, Accugas Limited (“Accugas”), focuses on marketing, processing and distribution of gas to the domestic market. The facility includes an accordion feature which will be raised from a combination of local and offshore lenders. The financing was made up of the following syndication of Term Debt and Working Capital debt providers: FBN Merchant Bank (former Kakawa Discount House), First Bank of Nigeria, FBN UK, FCMB, United Bank of Africa, Union Bank of Nigeria, Union Bank UK.

ACCUGAS Limited

Accugas III

Deal Description:

FBN Capital Limited was mandated by Seven Energy International Limited in 2013 to act as the Mandated Lead Arranger in the structuring and raising of a US$170 Acquisition Finance Facility.

The facility was used to part-finance the acquisition of 100% shareholding in East Horizon Gas Company Limited (EHGC). EHGC was incorporated by Oando Plc with the specific intention of developing and operating an 18-inch, 128km natural gas pipeline that connects with the Obigbo-Alscon pipeline at Ukanafun to supply gas to the UNICEM cement plant in Mfamosing, Cross River State, Nigeria, and to meet the need of other industrial users in the Calabar region. The acquisition of EHGC is in line with SEIL’s strategic plans for expanding its gas transmission and distribution network assets in the southeast Niger Delta region to supply the regional demand centers of Aba, Calabar and Port Harcourt.

FBN Capital leveraged on its strong relationships with financiers and broad understanding of the market dynamics in structuring the deal and was successful in raising the funds from a group of four local and international banks.

FBN Capital has been a trusted partner in developing the Accugas I, II & III expansion projects.

ACCUGAS Limited

 

Accugas Limited: US$170 million

Deal Description:

FBN Capital Limited (“FBN Capital”) was mandated by Accugas in 2012 to act as the Global Facility Coordinator, Financial Model Bank and one of the Mandated Lead Arrangers in structuring and raising a $225 million project finance facility for its gas pipeline project.

Accugas is the Nigeria-based midstream gas marketing, transportation and distribution subsidiary of Seven Energy International Limited.  The transaction involved the restructuring, refinancing and raising of additional debt from a group of 4 local banks.

The facility will be utilized as follows: a) to refinance its existing $55 million project finance facility under the Ibom Power Gas Pipeline project and; b) to part finance the project costs in relation to its proposed new gas pipeline expansion project (the Calabar IPP project).

Key features of the financing structure include long-term gas supply contracts, mitigated payment risk in the forms of a GSA deposit and Worldbank Partial Risk Guarantee, reduced repayment risk due to a Revenue Support Guarantee from the Sponsor and proven market demand.