The new facility will refinance and replace the existing K1.27 billion (US$400) million secured capital expenditure facility.
The additional finance should assist the firm and its’ proposal with US giant-Exxon Mobil.
InterOil’s independent Transaction Committee has had numerous discussions regarding InterOil’s financial position and recognised that the availability of additional capital would be important to InterOil on a going-forward basis.
As such, in order to ensure that InterOil would have sufficient capital to meet its ongoing expenditure obligations, the Committee recommended to the Board that management of InterOil continues to explore the availability of additional funding options.
Yesterday’s announcement is the culmination of those efforts and has been approved by the full Board.
The facility is secured at an annual interest rate of LIBOR plus 6.5 percent and terminates at the end of 2017.
In addition, if InterOil receives the interim resource certification payment (as contemplated by the share purchase agreement dated March 26, 2014 between subsidiaries of InterOil and Total S.A.) prior to the closing of the proposed transaction with ExxonMobil, the amount of such payment must be used to repay amounts outstanding under the facility.
The firm said lenders in the facility include Australia and New Zealand Banking Group Limited (ANZ), Intesa Sanpaolo SPA, Westpac PNG Limited, Bank of South Pacific Limited, Macquarie Bank Limited, Credit Suisse AG, Morgan Stanley and UBS AG.
The financing was led by ANZ who acted as Structuring and Documentation Bank. Post Courier