(Alliance News) - Serica Energy PLC on Monday announced the signing of a USD525.0 million secured reserves-based lending facility.
The London-based upstream oil and gas company said the new facility will provide Serica "significantly increased liquidity to support future acquisitions and investments".
Structured as a revolving credit facility available in multiple currencies, Serica will have the option of doubling its debt space to USD1.05 billion through an uncommitted accordion feature. This option can be exercised within the first 36 months of the facility signing date, it said.
The firm said the loan will replace its existing borrowing facility, which has USD271 million drawn to be repaid upon completion of the new RBL facility, expected for January 2024.
Serica's current RBL facility is in amortisation phase, with capacity dropping to USD330.0 million at the end of 2023.
The new RBL facility will also feature a USD100.0 million sub-limit, which can be used to issue letters of credit without the need for cash security.
Structuring and coordination of the new facility have been managed by DNB and ING Bank NV, with support from Nedbank CIB, Natixis, London Branch and ICBC Standard Bank PLC.
Chief Executive Officer Mitch Flegg said: "I am very pleased to announce the signing of a new RBL facility which substantially enhances Serica's financial firepower. This has been achieved in a challenging market for upstream financing. The standing of the international banks in the lending syndicate reflects the quality of Serica's asset portfolio, strong balance sheet and ambitions for further growth. The new facility, combined with our existing attributes, means that Serica can approach acquisition and investment opportunities from a position of considerable strength."
Serica Energy shares were up 1.2% at 209.42 pence each in London on Monday morning.
By Hugh Cameron, Alliance News reporter
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Serica Energy (SQZ)