Red Fork settles refinancing
PERTH (miningweekly.com) – ASX-listed oil and gas developer Red Fork Energy has secured a new $150-million senior secured advancing term loan to refinance its existing debt.
The new facility replaced Red Fork’s existing $45-million credit facility with F&M Bank, and would provide capital to fund the company’s Mississippi Lime drilling programme over 2013 and 2014.
The facility would also enable the company to continue enhancing its reserve base over this period, and to increase production levels.
The new facility would have a maturity date of December 2017 and would have a London Interbank Offered Rate plus 8.5% per annum interest rate.
Red Fork said on Thursday that, in addition to a substantial increase in its funding availability, the new term loan also provided the company with the capacity to reinstate a Reserve Based Lending facility in 2014, which would allow Red Fork to preserve the funding power associated with the financing, while exploiting lower cost of capital options associated with allocating a portion of the debt sizing to Reserve Based Lending.
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