A refinancing arrangement has been undertaken by oil and gas producer and developer Horizon Oil Ltd (ASX: HZN).
The company has entered into a new senior debt facility with ANZ, Westpac and Industrial & Commercial Bank of China (ICBC).
Horizon chief executive Michael Sheridan said proceeds of the new facility will be applied to repay the company’s remaining $US20 million subordinated debt, and retire the residual balance of $US76.2 M of its existing senior debt with ANZ and Westpac, which matures in May, 2019.
He said the new debt facility, restructured as a reserves-base lending facility, has a maturity date of July, 2022, and provides improved terms.
The interest rate under the new facility is LIBOR plus 2.75% - halving the composite funding costs under the existing debt facilities.
“Further, the lending security is limited to Horizon Oil’s producing oil assets and customary corporate guarantees for a reserves base lending facility, with Horizon Oil’s substantial gas and condensate interests in Papua New Guinea mpt subject to charges in favour of the lenders,” Sheridan added.
The oil and gas production interests of Horizon include 26% of the Maari-Maniana field in the offshore Taranaki. In late 2017 Horizon had acquired a further 16% interest in Maari-Maniana from Todd Energy.
Horizon also announced this week that it had appointed Kyle Keen as assistant company secretary.