InterOil Enters Into A Combined $350.0 M Refinery Working Capital Facility
Houston, TX - InterOil Corporation announced that IOC and its subsidiaries, EP InterOil and InterOil Limited, have entered into a $350.0 million working capital structured facility arranged by BNP Paribas (BNP), also acting as lead manager, to replace the existing $240.0 million bilateral working capital facility with BNP.
Out of the $350.0 million, $270.0 million will be a syndicated secured working capital facility with the support of five banking partners, namely: BNP, Australia and New Zealand Banking Group Limited (ANZ), Natixis, Intesa Sanpaolo (Intesa), and Bank South Pacific Limited (BSP). In addition, BNP will also be providing an $80.0 million bilateral non-recourse discounting facility.
The secured facility is to support the operational requirements of the Napa Napa Refinery in Papua New Guinea (PNG). It will be secured by InterOil's rights, title and interest in inventory and working capital of the Napa Napa Refinery.
Credit portion of the facility bears interest at LIBOR plus 3.75%. Funding is subject to Bank of Papua New Guinea approval on the granting of PNG security over refinery assets, and other standard closing conditions.
InterOil is pleased to have the support and confidence of longstanding banking partners. Collin Visaggio, InterOil's CFO remarked, "We are delighted to have strengthened our banking relationship with BNP who have led our existing working capital facility since 2004, and broadening our relationships with existing financiers like ANZ, BSP, and new syndicate partners Natixis and Intesa. The financing will assist with the ongoing operational activities of the refinery, which has experienced consistent growth over the past 5 years."
SOURCE: InterOil Corporation