LONDON (Alliance News) - Victoria Oil & Gas PLC said Thursday that lenders have shown support for the firm after it restructured debt outstanding to BGFIBank Cameroon SA.
The company signed a USD26 million facility with the bank in April 2016, which it drew down in 2016. After six months of interest only repayment it moved on to monthly principal and interest instalments.
The amount outstanding, Victoria said, stood at USD20.5 million, and the restructuring is effective from July 15.
The loan is for five years from restructuring, and has an initial 12 month interest-only period when principal will then be added. The interest rate is the Cameroon Bank base rate of 9% minus 1.85 percentage points.
Further, the company said, there are no extra financial covenants attached to the debt.
Finance Director Andrew Diamond said: "The restructuring of the BGFI debt facility is a substantial vote of support from our banker and a strong endorsement of our business in Cameroon."
Shares were 3.5% higher on Thursday at a price of 32.88 pence each.
