Republic of Senegal and PETROSEN in Two Major Energy Projects, page-7

Cujo,

I hope you don't have a lot of exposure on this one.

My cal shows their leverage will be 89% (without including the contingencies). The capital raised will only cover interest charges, some capital expenses and working capital til 2023. There is not much spare room for contingencies.

In any case, the leverage is extremely high - much higher than STO of a few years ago.

You can see why the banks are hesitating: I suspect a new Term Sheet will be issued at a much higher rate to reflect the risks (the original proposal was for RBL of USD $350M and the rest was via capital raise). Expect to see the rate above 10%, if a binding term sheet is offered.

Furthermore, I suspect the Junior Debt holder will also revise their rates to reflect the risks. I suspect this will go above 15% plus libor.

Overall, this company is really betting everything on higher oil prices in the future (ie. greater than $65 pb).

Good luck to you guys here (genuine holders only).