(Alliance News) - EnQuest PLC has signed a new USD750 million debt facility to enable refinancing and the acquisition of assets in the the North Sea's Golden Eagle field, it announced on Friday.
The petroleum exploration and production company said it has signed a new senior secured borrowing base debt facility of around USD600 million and an additional USD150 million for letters of credit for up to seven years.
The new facility will enable EnQuest to "simplify its existing capital structure and finance the acquisition of a 26.69% interest in the Golden Eagle assets".
Chief Financial Officer Jonathan Swinney commented: "I am delighted to have agreed this new facility. It enables the refinancing and simplification of our existing capital structure and the acquisition of the Golden Eagle assets which will add material value, production and reserves to EnQuest.
The refinancing was led by banks BNP Paribas SA and DNB ASA.
Golden Eagle is a "high-quality, low-cost UK North Sea development" which adds "immediate material production" to EnQuest, Chief Executive Amjad Bseisu said in a statement in February.
In February, EnQuest announced it would pay an initial USD325 million to acquire a 27% stake in the Golden Eagle area, which includes the Golden Eagle, Peregrine and Solitaire fields.
EnQuest shares were trading 3.5% higher in London on Friday at 19.98 pence each.
By Will Paige; willpaige@alliancenews.com
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Enquest (ENQ)