Background
- Based in Adelaide, Otto Energy Limited (Otto Energy or the Company) is an oil and gas exploration and production company operating in the Gulf of Mexico and onshore Texas
- Otto Energy engaged AE as the lead advisor on
Our role
- AE constructed an extensive assessment of all other available debt funding options, including but not limited to: different debt instruments, financiers, and terms
- Consideration of the company’s future events and factors, such as ongoing projects, and their potential to impact negotiations with all parties
Outcomes
- Otto Energy entered into a three-year senior secured A$79.85m (US$55m) term debt facility with Macquarie Bank Limited (Macquarie)
- The initial commitment under the facility is US$35m with an additional US$20m subject to further credit approval from Macquarie
- The facility will be used to fund the Company’s current and future developments, including Green Canyon 21, Lightning and any new discoveries arising from the remainder of the current programs
- AE advised Otto Energy on the most commercially viable funding solution with competitive interest rates and terms with flexibility for expansion and repayment, following an extensive assessment of all other available debt funding options