Business
Signing of US$200 million RBL Facility
Signing of US$200 million RBL Facility.
About this update from Jadestone Energy Plc
[{"type":"text","content":"\n\n\n\nSigning of US$200 million RBL Facility\n \n19 May 2023 - Singapore: Jadestone Energy plc (\"Jadestone\" or the \"Company\"), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce that it has signed a new US$200 million reserves-based lending (\"RBL\") facility with a group of four, reputable, international banks (\"the RBL Banks\"). The facility also provides for an uncommitted accordion of US$160 million, subject to incremental availability of bank debt. The RBL facility is expected to close shortly following the satisfaction of outstanding conditions precedent.\n \nThe RBL facility has a 4-year tenor and, as usual, is subject to bi-annual redeterminations to determine available debt capacity, which will vary over time depending on several parameters including oil prices, operating performance, hedging, future acquisitions and abandonment estimates. Under current assumptions, borrowing capacity under the RBL facility is constrained prior to the Akatara field being integrated as a producing asset, after which it will increase significantly. Both Jadestone and the RBL Banks can initiate additional redeterminations when appropriate.\n \nThe RBL facility pays interest at 450 basis points over the secured overnight financing rate, plus the applicable credit spread. Jadestone will also pay customary arrangement and commitment fees. The facility incorporates standard terms and conditions for RBL facilities, including a parent company financial covenant of maximum total debt of 3.5 times annual EBITDAX.\n \nThe RBL facility will first be used to repay the US$50 million Interim Facility, which will be fully drawn on 22 May 2023. The RBL facility will also fund the Company's operations and capital investment program, particularly the Akatara gas project onshore Indonesia, and can be also used for general corporate purposes.\n \nPaul Blakeley, President and CEO commented:\n \n\"We are very pleased to have achieved this milestone financing with four international banks, providing a significant debt facility in support of our strategy as a responsible operator in the Asia-Pacific region. The banks recognise that our strategy fits well within the energy transition and have worked closely with us to ensure we deliver on environmental and operating perform...