Refinancing of Credit Facilities
Vivo Energy Investments B.V., a subsidiary of Vivo Energy Ltd ─ a market-leading, pan-African retailer and distributor of high-quality fuels and lubricants using the Shell and Engen brands ─ has successfully completed the refinancing of its credit facilities.
Vivo Energy has secured a new US$ 700 million facility split across a US$ 400 million 5-year term loan and a US$ 300 million 3+1+1 year revolving credit facility.
The facilities will be used to (i) refinance the US$ 600 million bridge loan, drawn on 13 October 2022, with an initial term of 12 months and two three-month extension options (ii) refinance Vivo Energy’s US$ 270 million revolving credit facility, that matured in May 2023 and (iii) for general corporate purposes.
Commenting on the announcement, Jay Gleacher, CFO, Vivo Energy said: “Closing the refinancing of our credit facilities not only strengthens our financial position, but also provides us with enhanced flexibility and terms, allowing us to execute our growth strategy of maximising value, accelerating growth and evolving our business model. The trust and confidence shown by our banking partners reaffirms our shared belief in the long-term potential of Vivo Energy, and the value we bring to our stakeholders.”
The facilities were arranged by Citi, HSBC and Société Générale as Mandated Lead Arrangers and Bookrunners. Standard Bank, Standard Chartered, ABSA and RMB joined as Mandated Lead Arrangers and Natixis and Sanlam joined as Lead Arrangers.
Additionally, and further to our announcement of 9 February 2023 regarding Vivo Energy’s combination with Engen to create a pan-African champion, we are pleased to announce that Standard Bank and Rand Merchant Bank have been appointed as Joint Mandated Lead Arrangers, Underwriters and Bookrunners for an acquisition finance facility to fund part of the transaction.
Up to ZAR10 billion is expected to be drawn down from this facility, with the remainder of the purchase consideration being funded with equity from our shareholders. The transaction is currently pending regulatory approvals and fulfilment of conditions precedent.
ENDS
For further information, please contact:
Issam Sadiq
VP Finance: Treasury
+212 522 437 501
Rob Foyle
Head of Communications
+44 7715 036 407
About Vivo Energy:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has a network of over 2,600 service stations in 23 countries operating under the Shell and Engen brands and exports lubricants to a number of other African countries. Its retail offering includes fuels, lubricants, card services, shops, restaurants and other non-fuel services. It provides fuels, lubricants, liquefied petroleum gas (LPG), and solar energy solutions to business customers across a range of sectors including marine, mining, construction, power, transport, wholesalers and manufacturing. The Company employs around 2,800 people, has access to over 1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell and Vivo Lubricants B.V., that sources, blends, packages and supplies Shell-branded lubricants.
For more information about Vivo Energy, please visit www.vivoenergy.com