Swala Oil Extends Date for Close of Investment in Orca Group

DAR ES SALAAM (Capital Markets in Africa) – Swala Oil & Gas Tanzania Plc extended by two weeks the second and third closing off as much as $130 million investment in Orca Exploration Group Inc.’s Mauritian unit to July 13 from June 29, the company said.

Extension to the second and third closing dates “have been necessary because of the preferred change of listing venue” for $50 million of bonds, the Dar es Salaam-based company said in a statement published on its website.

Swala, which has exploration licenses in both Tanzania and Burundi, submitted its application to list $50 million worth of bonds on the Dar es Salaam Stock Exchange in January and
withdrew it in May to begin the process of trading the securities on the Mauritian bourse, it said.

“The company understands that the listing process of the corporate bonds on the Stock Exchange of Mauritius is close to completion,” according to the statement. “The Stock Exchange of Mauritius is well-positioned as an attractive capital raising and listing platform for international issuers and is the only exchange in Africa possessing a multi-currency listing.”

The company’s shares remain listed on the Dar es Salaam Stock Exchange, it said.

The five-year bonds issued in euros, U.S. dollars, South African rand, Mauritian rupee and Swiss Francs with a coupon of 14.5 percent will be sold through a private placement. Proceeds from the securities will be used to acquire as much as an additional 32.07 percent of PAE PanAfrican Energy Corp.

“Separate discussions are being held with several of these investors on a potential equity-linked tranche, which would reduce the company’s projected leverage and improve projected cash flows,” Swala Chief Executive Officer David Mestres Ridge said.

Source: Bloomberg Business News