FTSE250 oil and gas firm Salamander Energy (LON: SMDR) has completed a debt refinancing that the firm believes reflects the “significant” cash flow that the group is generating.
The facility is a US$325 million seven-year senior and junior ‘reserve-based lending facility’ that was arranged with BNP Paribas and Standard Chartered as coordinating banks. Lead arrangers in the facility also include IFC, Crédit Agricole, Natixis, ING, ANZ and Standard Bank.
The new debt arrangement replaces the US$230 million senior and junior reserve-based lending facility arranged by BNP Paribas in 2008/2009 and the US$90 million acquisition bridge loan that was executed in September 2010 as part of Salamander’s acquisition of an additional interest in its B8/38 licence in the Gulf of Thailand.
“We are pleased to be entering into an expanded, more flexible debt facility with a strong combination of existing and new lenders,” said Salamander’s chief executive James Menzies. “The cost and structure of the debt refinancing reflects the significant, cash flow generation from the Group's growing production base.”
Asia-focused Salamander has a portfolio of production, development and exploration assets with interests located in Indonesia, Thailand, Vietnam and Laos.
Shares in Salamander were up half a penny at 287.75 pence at 10:30am.