The company said it plans to use the investment to pay down $78m of debt under a senior secured agreement with Standard Bank and BNP Paribas, a $73m short-term credit agreement with Dalea and a $2.5m promissory note to Dalea affiliate Viking Drilling.
Transatlantic chief financial officer Wil Saqueton said, “The divestiture of the Viking entities immediately strengthens Transatlantic’s balance sheet, leaving us essentially debt free with a simplified administration and accounting process.
“TransAtlantic should now be able to focus on its core business of developing its exploration and production opportunities and grow at a more rapid pace.”
The deal comprises $152.5m cash and an $11.5m interest-bearing promissory note from Dalea, which would be payable five years from the date of issue or earlier depending upon specified events.
Earlier this month Dubai-based Abraaj bought UK Aureos Capital in a deal which created the world’s largest private equity firm focused on SMEs in emerging markets.
The combined entity will hold around $7.5bn of assets and boast a portfolio of 153 investments across more than 30 countries.
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