Brooge Energy Ltd Subsidiary Completes Issuance of USD$200 million Senior Secured Bonds
11 Septiembre 2020 - 8:02AM
Brooge Energy Ltd. (“Brooge Energy” or the “Company”)
(NASDAQ: BROG) today announced that its subsidiary, Brooge
Petroleum and Gas Investment Company FZE (“BPGIC”), has
successfully completed the issuance of a USD$200 million 5-year
senior secured bond (with potential follow-on issuances of up to
USD$50 million for a maximum aggregate borrowing limit of USD$250
million) in the Nordic bond market. The bonds will mature in
September 2025 and have a fixed coupon of 8.50% per annum. The
transaction is subject to customary closing conditions and
settlement is expected to occur on September 24, 2020. BPGIC’s
obligations under the bonds are guaranteed by Brooge Energy.
The bond issue provides a flexible financial
platform to support the Company’s future growth agenda and marks a
key milestone for the Company in entering the international bond
market. The proceeds of the bond issue will, among other purposes,
be used to repay existing bank debt for Phase I, thereby enabling
the Company to have a single consolidated debt facility. It will
also be used to fund remaining capital expenditures ahead of the
launch of the Company’s Phase II oil storage facility.
Nicolaas L. Paardenkooper, CEO of Brooge Energy
and BPGIC, said, “Our inaugural bond issue was well received by a
global investor base and we are pleased to have secured this new
debt financing. The additional capital will be used to strengthen
our balance sheet and to complete construction of our Phase II oil
storage facility, which is already fully contracted with a
multi-year take-or-pay contract. When our Phase II storage facility
is completed and operational, which we currently anticipate will
occur at the end of this calendar year, the Phase I & II
storage facilities will have a combined geometric storage capacity
of approximately 1 million m3, or 6.3 million barrels of oil,
making BPGIC the second largest storage operator in the Port of
Fujairah, UAE. The Phase II facility is expected to generate
significant operating cash flows when operational and is a key
element in our strategy to build value for shareholders.”
Pareto Securities acted as Sole Manager in the
bond transaction.
The bonds have been and will be offered only to
qualified institutional buyers in reliance on Rule 144A under the
U.S. Securities Act of 1933, as amended (the “Securities Act”) and,
outside the United States, only to non-U.S. investors pursuant
to Regulation S under the Securities Act. The bonds have not been
and will not be registered under the Securities Act or the
securities laws of any other jurisdiction and have not been and
will not be offered or sold in the United States absent
an effective registration statement or an applicable exemption from
the registration requirements of the Securities Act and applicable
state or other jurisdictions’ securities laws.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy the bonds or any
other securities, nor shall there be any offer, solicitation or
sale of the bonds or any other securities in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Brooge Energy Limited
Brooge Energy conducts all of its business and
operations through its wholly-owned subsidiary Brooge Petroleum and
Gas Investment Company FZE (“BPGIC”), a Fujairah Free Zone Entity.
BPGIC is a midstream oil storage and service provider strategically
located outside the Strait of Hormuz adjacent to the Port of
Fujairah in the United Arab Emirates. BPGIC’s oil storage business
differentiates itself from competitors by providing its customers
with fast order processing times, excellent customer service and
high accuracy blending services with low oil losses. For more
information please visit at www.broogeenergy.com
Forward-Looking StatementsWith
respect to the potential follow-on issuances referenced herein,
there can be no assurance that any follow-on issuances will occur,
or if they do occur, as to their terms and conditions.
This press release contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995, that involve
risks and uncertainties concerning BPGIC’s and Brooge Energy’s
expected financial performance, as well as their strategic and
operational plans. The actual results may differ materially from
expectations, estimates and projections due to a number of risks
and uncertainties and, consequently, you should not rely on these
forward looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “would,” “could,”
“should,” “believes,” “predicts,” “potential,” “continue,” and
similar expressions are intended to identify such forward-looking
statements. These risks and uncertainties include, but are not
limited to: (1) the ultimate geographic spread, duration and
severity of the coronavirus outbreak and the effectiveness of
actions taken, or actions that may be taken, by governmental
authorities to contain the outbreak or ameliorate its effects; (2)
BPGIC’s ability to obtain financing for Phase III on commercially
reasonable terms; (3) BPGIC’s ability to negotiate and enter into
development and offtake agreements on commercially reasonable
terms; (4) the results of technical and design feasibility studies,
including the Phase III FEED study; (5) the loss of any end-users;
(6) changes in customer demand with respect to ancillary services
provided by BPGIC including throughput, blending, heating, and
intertank transfers; (7) BPGIC’s ability to effectively manage the
risks and expenses associated with the construction of Phase II,
Phase III and other growth and expansion projects; and (8) other
risks and uncertainties indicated from time to time in filings with
or submissions to the SEC by Brooge Energy. Readers are referred to
the most recent reports filed with or furnished to the SEC by
Brooge Energy. Readers are cautioned not to place undue reliance
upon any forward-looking statements, which speak only as of the
date made, and we undertake no obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor ContactKCSA Strategic
CommunicationsValter Pinto / Elizabeth Barker+1 212-896-1254 or +1
212-896-1203BROG@kcsa.com
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