Star Energy Group plc has closed a new €25 million secured loan for continued investment in oil and gas utilising its existing cash flows and its transition to geothermal energy.
ADVANTAGES
The “tailored” facility with two components is provided by Kommunalkredit Austria AG and matures on 31 December 2028.
Facility A will fund repayment of the outstanding US$7m balance on Star Energy‘s reserves-based loan from BMO, due at the end of June 2024.
The new facility has a fixed interest rate of 9.384% and is repayable on 30 June 2025.
Facility B will fund Star Energy’s geothermal developments and carries an interest rate of Euribor + 6%.
The loan has a five-year term with repayments scheduled to begin from 31 December 2025.
Chief executive Chris Hopkinson said that the size and structure of Kommunalkredit’s loan was evidence of its confidence in Star Energy’s workforce and its transition strategy.
“Securing this facility is an important milestone for Star Energy.
“We believe that we have particular, tangible competitive advantages in making the energy transition.
“We have a highly qualified team already in place and an established track record in onshore development – everything from sub-surface expertise and knowledge of planning and other environmental processes through to long-term and responsible operatorship competence.”