LONDON (Alliance News) - Fortune Oil PLC Friday said its Hong Kong holding company had signed a USD300 million loan deal with a consortium of banks led by Morgan Stanley, which will be used to repay an existing syndicated loan and provide working capital and investment funds.
The new facility is denominated in dollars with a term of three years and a margin of 2.75% over LIBOR. It is guaranteed by Fortune Oil and secured by share charges over its various investment holdings subsidiaries, the company said in a statement.
"A total of 18 international and regional banks participated in the transaction and the facility was materially over-subscribed," it said.
It previously had a USD180 million three-year loan facility which it signed in April 2011.
Fortune Oil shares were up 2.8% at 8.43 pence early Friday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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