HOUSTON, March 16, 2017 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE:EGY) announced today that the International Finance Corporation (IFC) approved VAALCO’s formal request to borrow $4,166,500 of additional funds under its Supplemental Agreement with the IFC which was executed June 29, 2016. The borrowed funds will provide added financial flexibility and facilitate execution of VAALCO’s corporate strategy.
The Supplemental Agreement amended VAALCO’s previously existing loan agreement with the IFC, converting the revolving portion of the credit facility to a term loan with $15 million outstanding and providing that VAALCO could request an additional $5 million of borrowings, subject to IFC approval.
VAALCO received the approval from the IFC on March 14, 2017 and expects to receive the funds on or before March 31, 2017. The additional borrowings will be repaid in five essentially equal quarterly principal installments commencing June 30, 2017, together with interest which will accrue at LIBOR plus 5.75%.
Cary Bounds, VAALCO’s Chief Executive Officer, commented, “IFC’s approval of these additional funds helps position VAALCO during 2017 to execute on future growth initiatives, such as development drilling or opportunistic acquisitions. We value our relationship with the IFC and appreciate the many years of support they have provided VAALCO that has allowed us to continue our development activities in Gabon.”
VAALCO Energy, Inc. is a Houston-based independent energy company principally engaged in the acquisition, development and production of crude oil. The Company's properties and acreage are located primarily in Gabon and Equatorial Guinea in West Africa.