EnQuest plc has signed new six-year, senior secured reserves based lending facilities for an aggregate $800 million (£608m) with a syndicate of eight “leading international banks”.
STRATEGY
The syndicate financing the facilities includes “long-standing existing lenders and high-quality new relationships”.
The sum comprises a $400m secured revolving loan, a $400m secured revolving letter of credit, and an accordion of up to $800 million.
The company said that the accordion provided the potential to extend the secured revolving loan facility and the revolving letter of credit facility by up to $400m each.
EnQuest will use the new funds to refinance the group’s existing $500m RBL facility, which included a $75m letter of credit sublimit, due to mature in April 2027.
The company added that the expanded letter of credit tranche provided “committed long-term coverage” for its “decommissioning security obligations”.
“I am very pleased to have agreed these new facilities, which provide EnQuest with an enhanced capital structure that is simple, flexible and aligned with our growth ambitions,” said chief financial officer Jonathan Copus.
“I would like to thank our new lender syndicate for their support, and I look forward to working with them to deliver EnQuest’s strategy.”
EnQuest’s decommissioning operations include the Thistle/Deveron, Heather/Broom, Alma/Galia and The Dons fields in the UK North Sea.
The group’s upstream assets are located in the UK North Sea and offshore Indonesia and Malaysia.