The facility size is USD 700 million with an uncommitted accordion feature of USD 350 million. With the consent from the lenders and subject to certain conditions, USD 350 million can be added to the existing USD 700 million facility. This is a seven-year facility maturing mid-year 2024 with a bank consortium consisting of 12 banks. The RBL facility is secured by a package including licence pledge over producing fields and certain development projects. The loan carries an interest of LIBOR plus a margin of 3 percent per annum. Certain fees are also payable.
The available amount under the USD 700 million RBL facility is determined semi-annually based on an assessment of the value of the Company’s borrowing base assets.
Financial covenants under the RBL facility include, inter alia, a leverage ratio covenant (Net debt / EBITDAX below 3.5x), as well as liquidity tests.
A USD 250 million unsecured bond loan was issued in March 2018 and matures in September 2024. The bond carries a fixed coupon of 8.5 percent. Coupons are payable in semi-annual instalments. The bond will be listed on Oslo Stock Exchange.
Financial covenants for the bond include a leverage ratio covenant harmonised with the RBL facility as described above, a minimum liquidity of USD 50 million and certain other restrictions.