UK oil explorer, Tullow, announced November 7, 2012 that it has closed a $3 billion refinance debt of Reserves Based Lend (RBL) credit facilities.
According to Tullow, this debt refinancing will give the company a solid foundation for funding its major projects in Ghana as well as other capital investments.
“In conjunction with our strong operating cash flows this will provide a solid foundation for funding our major development projects in Ghana as well as other capital investments,” said Ian Springett, Chief Financial Officer for Tullow.
According to the Jubilee oil operator, the arrangements were fully “committed, secured and revolving credit facilities and replaces the previous facility which was due to expire in 2015”.
The $3.5 billion of credit facilities, Tullow said in a statement, are split between a Senior Facility of $3.235 billion, a Junior Facility of $100 million, and an IFC facility of $165 million all with a final maturity of November 2019.
Tullow says it has an option to increase the Senior Facility by up to an additional $500 million subject to receipt of further lender commitments.
The facility documentation was signed October 31, 2012 by a syndicate of 27 international lenders, including the IFC, a member of the World Bank Group, the company indicated.
Mandated Lead Arrangers were BNP Paribas, Bank of America, Barclays Bank, Credit Agricole Corporate & Investment Bank, Deutsche Bank, DNB Bank, HSBC Bank, ING Bank, Lloyds TSB Bank, Natixis, Nedbank, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Royal Bank of Scotland.