UK-based independent oil and gas company EnQuest has signed new senior secured reserve-based lending (RBL) facilities totalling $800m (£607.55m).
The six-year agreement consists of a $400m secured revolving loan facility and a $400m secured revolving letter of credit facility.
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It also includes an accordion feature, allowing for potential expansion of both the loan and letter of credit tranches by up to $400m each.
EnQuest intends to use the new package to refinance its existing $500m RBL facility, which includes a $75m letter of credit sub-limit and was originally set to mature in April 2027.
The new arrangement replaces the previous facility, extends EnQuest’s access to committed funding and supports its liquidity position.
EnQuest chief financial officer Jonathan Copus said: “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.
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By GlobalData“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 refinancing is supported by a syndicate of eight international banks including both long-standing lenders and new participants.
The new facilities incorporate standard RBL terms including hedging requirements and semi-annual borrowing base redeterminations.
They also include a springing maturity provision linked to the company’s high-yield notes.
The initial interest rate on the new loan facility is set at the secured overnight financing rate plus 4%.
According to EnQuest, the expanded letter of credit tranche is designed to provide long-term coverage for its decommissioning security obligations.
EnQuest operates as an independent energy producer with assets in the UK North Sea and South East Asia. It is listed on the London Stock Exchange.
In July, EnQuest secured a production sharing agreement for Block C offshore Brunei Darussalam.
