Dart Energy International, the international operating arm of Dart Energy Limited, has entered into a mandate with HSBC Bank to arrange an up to US$100 million senior secured revolving borrowing base facility for development funding of Dart International’s near term revenue projects.
Material terms of the Mandate include the following:
• The Facility will comprise a senior secured revolving facility of up to US$100 million comprised of an up to US$90 million borrowing base tranche (Tranche A) and a US$10 million working capital tranche (Tranche B).
• The total Tranche A commitments will amortise over five years with first amortisation after two years. Tranche B will be repaid as a bullet at the end of the life of the Facility which is five years.
• The initial base borrowing assets will be Dart International’s interest in PEDL 133 (Scotland), the Liulin PSC (China) and the Sangatta West PSC (Indonesia).
• Subject to consent of the lenders, Dart International will have the right to incorporate new assets into the borrowing base from time to time.
The Mandate is subject to customary conditions such as the completion of due diligence, the execution of binding Facility documentation, final HSBC credit approval and no material adverse change. Due diligence and work on the Facility documentation is already well underway.
Commenting on this development, Dart International Chief Executive Officer, John McGoldrick , said: “ We are pleased with the vote of confidence in our business and assets that the HSBC mandate represents. The debt facility, together with the proceeds of other previously announced corporate fund raising activities, we believe will provide us with greater financial strength and flexibility and will ensure that we are well positioned to execute on our objective to become a leading global unconventional gas producer ”.
[mappress]
LNG World News Staff, April 10, 2012