Serica Energy plc is pleased to announce the signing of a new US$525 million secured Reserves Based Lending (“RBL”) facility.
Mitch Flegg, Chief Executive of Serica, commented:
“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.”
The new RBL facility replaces Serica’s existing RBL and Junior facilities. The existing RBL facility has US$271 million drawn and will be fully repaid upon completion of the new RBL facility, which is expected to occur in January 2024. The Junior facility remains undrawn.
The Structuring & Coordination Banks include DNB (Facility Agent & Documentation Bank) and ING Bank N.V.. The Bookrunner Mandated Lead Arrangers include DNB, ING Bank N.V. and Nedbank CIB.
The Mandated Lead Arranger is Natixis, London Branch. The Lead Arranger is ICBC Standard Bank plc.
The syndicate of banks received legal advice from Bracewell LLP. Serica received legal advice from Burness Paull LLP.
The financial advisor to Serica was Kirk Lovegrove and Company Ltd.
1 Uncommitted accordion feature provides option for additional financing of up to US$525 million which can be exercised within thirty-six months of the facility signing date, subject to certain conditions.
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