Serica Energy PLC, a London-based upstream oil and gas company, has successfully completed its USD525 million borrowing facility. The facility, structured and coordinated by DNB and ING Bank NV, with support from Nedbank CIB, Natixis London Branch, and ICBC Standard Bank PLC, replaces Serica’s previous borrowing facilities. The company had previously announced that the amount would be fully repaid upon the completion of the new facility.
The new borrowing facility is a six-year reserves-based lending facility and is available in multiple currencies as a revolving credit facility. It offers an uncommitted accordion feature that allows Serica to double its debt space to USD1.05 billion within the first 36 months from the signing date. The facility also includes a USD100 million sub-limit that enables the company to issue letters of credit without cash security.
Serica Energy stated that the new borrowing facility provides significantly increased liquidity for future acquisitions and investments. The company plans to use the additional funds to further develop its projects and pursue growth opportunities in the oil and gas sector.
Serica Energy PLC’s stock price currently stands at 206.00 pence per share, experiencing a slight downturn of 0.3% on Tuesday morning in London.
The completion of the borrowing facility is another milestone for Serica Energy PLC, strengthening its financial position and enhancing its ability to seize new opportunities in the global energy market. With the new facility in place, the company is well-positioned for future growth and expansion.
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