Oando amends US$401mn loan repayment

each dated May 30, 2013, as amended, with Oando Plc, the holder of 94.6 per cent of the shares of Oando Energy Resources.
According to the statement sent to the Nigerian Stock Exchange over the weekend, it extended the repayment date from December 31, 2013 until January 31, 2014 and permitted the US$15 million loaned by Oando to OER pursuant to the amendment to the loan documentation made on November 28, 2013 (plus interest) to be repayable in common shares of the company.
“Prior to the recent amendment, the amount permitted to be converted into shares was US$386 million plus interest,” it said.
The statement said pursuant to the loan documentation (and as a result of the amendments), Oando Energy Resources was permitted to elect to repay amounts owing under the loan agreement through the issuance of shares, provided that all regulatory approvals have been obtained.
In the event that the election by Oando Energy Resources to repay the facility by the issuance of shares, repayment would result in Oando having an ownership interest in the company that is higher than Oando’s current ownership interest of 94.6 per cent.
The statement said: “The number of shares to be issued by Oando Energy Resources will be reduced so as to ensure that Oando’s stake in the Company does not exceed such current ownership interest and the balance, if any, of amounts owing under the loan documentation will be payable in cash. Any issuance of shares to Oando pursuant to the loan documentation will not result in an increase in control by Oando over the company.