InterOil entered into a new $400 million senior secured capital expenditure facility arranged by Australia and New Zealand Banking Group as sole mandated lead arranger and book runner. Once the standard conditions precedent are satisfied, the new facility will refinance and replace the existing $300 million secured capital expenditure facility.
The facility is secured at an annual interest rate of LIBOR plus 6%, with maturity extended from the end of 2016 to the end of 2017.
Other supporting lenders include Westpac PNG, Bank of South Pacific, Intesa Sanpaolo SPA, Credit Suisse AG, Société Générale, Morgan Stanley and UBS AG.
InterOil’s Chief Financial Officer Donald Spector said, “We are taking proactive steps to increase our financial flexibility. The new, increased and extended credit facility underscores the lenders’ confidence in our Papua New Guinea assets and in Papua LNG, one of the world’s lowest cost green-field LNG projects.”
InterOil is an independent oil and gas business with a sole focus on Papua New Guinea. InterOil’s assets include one of Asia’s largest undeveloped gas fields, Elk-Antelope, in the Gulf Province and exploration licenses covering about 16,000sqkm. Its main offices are in Singapore and Port Moresby. InterOil is listed on the New York and Port Moresby stock exchanges.