Puma Energy successfully closes 1-year revolving credit facility and completes covenant amendment requests
30 Apr 2020
Singapore, Thursday 30 April 2020 - Puma Energy (the “Company”), the globally integrated energy retail and distribution company, is pleased to announce that it has successfully closed a 1-year Revolving Credit Facility in excess of US$310 million (“New RCF” or the “New Facility”), with two 1-year extension options.
This will be used to refinance the Company’s existing 1-year US$350 million revolving credit facility dated April 2019. In conjunction with this refinancing, the Company also successfully updated the financial covenants in all its outstanding syndicated and bilateral loan facilities (the “Existing Facilities”). The refinancing and amendments were successfully navigated by the Company despite a volatile market backdrop and weakening macroeconomic environment as a result of the ongoing COVID-19 pandemic.
The New Facility received significant attention across a globally diverse group of investors, with commitments from 17 banks with a broad geographical split (35% Europe, 29% Asia-Pacific, 32% Africa, 4% Americas).
ABSA Bank Limited (acting through its Corporate and Investment Banking Division), Bank of America (“BofA”), FirstRand Bank Limited (acting through its Rand Merchant Bank Division), ING Bank N.V. (“ING”), Natixis, Nedbank Limited, London Branch, Société Générale (“SG”) and The Standard Bank of South Africa Limited acted as Mandated Lead Arrangers and Active Bookrunners for the transaction, with ING and SG acting as the Coordinators for the syndication, whilst BofA acted as Documentation Agent and SG as Facility Agent.
In parallel to the refinancing, the Company also requested amendments to certain provisions relating to the Interest Cover Ratio and Consolidated Net Worth covenants in its Existing Facilities to conform those provisions to the equivalent provisions in the New Facility.
The Company received consents exceeding the required Majority Lender threshold (66 2/3 % of total commitments) across the syndicated facilities. The amendments requested to Puma Energy’s outstanding bilateral facilities were also successfully passed, on the back of strong relationships with the Company’s existing lenders. BofA acted as Sole Coordinator on the covenant amendment requests across the Existing Facilities.
Andrew Kemp, CFO at Puma Energy, said:
“The successful close of our Revolving Credit Facility and amendments to covenants is a strong signal of support from our lending banks, as we continue to focus on delivering sustainable and profitable growth in line with our customer led strategy. This is an especially significant achievement in the current climate where access to liquidity is highly sought after, and is a clear testament to our ability to execute management's strategic vision.
"We remain committed to maintaining strict cost and capital controls and ensuring that Puma Energy is well-positioned financially to withstand wider market headwinds. I am confident that this facility along with the amended covenants will allow the business to drive the delivery of its 5-year business plan throughout the remainder of 2020 and beyond.”
This announcement contains inside information under Article 17 of Regulation (EU) 596/2014 (16 April 2014).
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Elizabeth Adams | Genevieve Ryan
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Further information can be located at: https://www.pumaenergy.com/en/investor-relations/home/
About Puma Energy
Puma Energy is a leading global energy business with a customer-focused approach to safely providing energy solutions in 46 countries across six continents. Puma Energy has around 3,000 retail sites, a presence at over 80 airports and a network of 100 storage terminals. Our purpose is to energise communities to help drive growth and prosperity by sustainably serving our customers’ needs in high potential countries around the world.
For further information visit: www.pumaenergy.com
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