Independent oil company Faroe Petroleum signed two banking facilities that will provide financing to underpin the company’s growth plans.
BNP Paribas, BMO Capital Markets, Commonwealth Bank of Australia, Danske Bank, DNB Bank, ING, Royal Bank of Scotland, SEB, SR-Bank and Wells Fargo provided the facility.
The $250 million reserve base lending (RBL) facility is available to finance the relevant assets and approved capital expenditure, operating costs and acquisitions. In addition to the committed $250 million, a further $100 million is available on an uncommitted accordion basis. This facility has a seven-year final maturity with an amortizing schedule from January 2020. It replaces Faroe’s existing RBL facility which matures on June 30, 2018. The company currently has no loans drawn under the RBL facility.
The company also closed a NOK 1 billion ($114 million) facility to finance the majority of Faroe’s exploration and appraisal costs on the Norwegian Continental Shelf. A further NOK 500 million ($67 million) is available on an uncommitted accordion basis.
Graham Stewart, chief executive of Faroe Petroleum said, “We are very pleased to have concluded this financing exercise and to have received such strong support from both our existing bank syndicate and new lenders. The new facilities provide us with substantial funding to support the continuing growth of the group and the financing of our development assets.”
Rothschild and Pinsent Masons advised the company and Watson Farley & Williams advised the banks.