EIG leads $425m loan to New Age

New Age (African Global Energy) will use the facility to fund its expansion of exploration and production activities.

EIG Global Energy Partners has co-led a group of investors providing a $425 million loan to New Age (African Global Energy) that will fuel the company’s growth in both Africa and the Middle East.

The Lagos, Nigeria-based New Age announced on 30 June that it closed on a senior secured loan facility and drew down $350 million, tapping more than 80 percent of the loan right away. Alongside EIG, African Finance also led the financing, which came from a total of five lenders. Terms of the facility were not disclosed.

The loan brings New Age’s total debt and equity investment for the first half of the year to $600 million, chief executive Steve Lowden said in a statement. The loan will support the expansion of oil exploration and production activities in its Aje field in Nigeria, offshore fields in the Republic of the Congo and the Kurdistan region of Iraq, the company said.

A spokesman for EIG declined comment. Evercore was the financial consultant on the transaction.

EIG closed its most recent investment in February when it finalised a $500 million investment, $375 million in equity and an additional $125 million, with Rice Energy. Washington-based EIG currently manages $13.8 billion of assets through credit and direct lending via energy funds that provide a mix of debt and structured equity financing.