Serica Energy plc has signed a new US$525 million secured reserves based lending facility, with the potential to double the figure to more than $1 billion.
QUALITY
The new transaction simplifies the company’s financing arrangement by replacing the existing RBL and junior facilities with a single facility.
The existing RBL facility has $271m drawn and will be fully repaid on completion of the new RBL facility, expected in January 2024. The junior facility remains undrawn.
Serica said that the new deal “significantly” increased liquidity to support future acquisitions and investments.
The debt’s maturity is deferred by more than two years to 31 December 2029.
The company has also established new relationships with a syndicate of leading international banks.
The borrowing base assets comprise all Serica’s interests in producing fields except the
Rhum field.
“I am very pleased to announce the signing of a new RBL facility which substantially enhances Serica’s financial firepower,” added chief executive Mitch Flegg.
“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.”