25th Aug 2023 17:06
(Alliance News) - EnQuest PLC on Friday said that it has agreed a term loan facility of up to USD150 million, which is due to mature in July 2027.
EnQuest is a London-based oil and gas producer with assets in the UK and Malaysia.
According to the firm, this new loan will rank junior to its existing USD500 million reserve based lending facility as a secured second lien instrument within the capital structure. As at July 31, only USD240 million of the reserve based lending facility was drawn against an original commitment of USD500 million.
EnQuest said the loan proceeds would be used for general corporate purposes. It expects them to provide an additional source of liquidity in advance of the October settlement of the 7% GBP retail bond.
Within the loan, Double A Ltd has agreed to lend USD9 million on the same terms and conditions as all other lending parties. Double A is a company beneficially owned by the extended family of Amjad Bseisu, the chief executive officer of EnQuest.
Chief Financial Officer Salman Malik says: "We continue to de-lever our balance sheet and optimise our capital structure in response to the impact of the Energy Profits Levy on available borrowing capacity under the RBL. We are pleased to have secured this source of financing to extend our debt maturities and build optionality within the balance sheet as we look to support accretive growth opportunities. We thank our lending syndicate for their enhanced support."
EnQuest shares closed 1.8% higher at 16.25 pence each in London on Friday.
By Holly Beveridge, Alliance News reporter
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