By a News Reporter-Staff News Editor at Investment Weekly News -- InterOil Corporation (NYSE: IOC; POMSoX: IOC) has finalised a US$300 million syndicated, senior secured capital expenditure facility through a consortium of banks led by Credit Suisse AG.
The facility was supported by InterOil's existing banks, Credit Suisse, Commonwealth Bank of Australia, Westpac Bank, Australia and New Zealand Banking Group, Bank of South Pacific, BNP Paribas, UBS AG, Macquarie Capital Group, and new banks, The Bank of Tokyo-Mitsubishi UFJ and Societe Generale.
The facility, which has an annual interest rate of LIBOR plus 5%, matures at the end of 2015 and will fund InterOil's key capital and operating expenditure for exploration and appraisal in the Eastern Papuan Basin of Papua New Guinea.
It replaces InterOil's existing US$250 million facility with Credit Suisse that was scheduled for repayment by 30 June 2014.
InterOil expects to repay the facility at maturity using variable resource payments that Total SA is obliged to make on certification of Elk-Antelope reserves as part of Total's purchase of an interest in Petroleum Retention Lease 15.
InterOil's Chief Financial Officer, Don Spector, said the banks' response was pleasing, with expressions of interest well in excess of the final amount.
"This is a positive indication of how our lenders view the quality of our assets," Mr. Spector said.
"Importantly, InterOil now has access to more than US$500 million in cash, undrawn debt and working capital to support our operations and fund further exploration and appraisal as part of our growth strategy."
Keywords for this news article include: Banking and Finance, InterOil Corporation.
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