InterOil, the holder of a 35.5 percent stake in Papua New Guinea’s PRL 15, on Thursday revealed it has entered into a US$400 million senior secured capital expenditure facility.
According to the company’s statement, the credit facility has been arranged by Australia and New Zealand Banking Group as sole mandated lead arranger and book runner.
InterOil intends to use the credit facility to refinance and replace the existing US$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,” InterOil said.
InterOil’s Chief Financial Officer Donald Spector added that the credit facility has been arranged in an attempt to increase the company’s financial flexibility.
Other lenders include Westpac (PNG), Bank of South Pacific, Intesa Sanpaolo, Credit Suisse, Société Générale, Morgan Stanley and UBS.