InterOil lands loan facility

INTEROIL has secured a $US100 million loan facility through a consortium of banks to finance debt repayments relating to its oil refinery – providing breathing space for its upstream endeavours.
InterOil lands loan facility InterOil lands loan facility InterOil lands loan facility InterOil lands loan facility InterOil lands loan facility

The five-year amortising, secured-term loan facility was provided by BNP Paribas Singapore, Bank South Pacific and ANZ Banking Group.

InterOil said it would be used to repay all outstanding amounts under the Overseas Private Investment Corporation's 2001-created term loan, which was secured by its Napa Napa oil refinery assets in Papua New Guinea.

"This financing should allow us to maintain our accelerated pace of upstream activity while we complete our negotiations with the PNG state and conclude our LNG partnering process," InterOil chief financial officer Collin Visaggio said.

"At this stage, we are pleased by the constructive dialogue with the state and the increased interest in investment in Papua New Guinea following the successful election and formation of the strongest coalition government in the country's history."

InterOil said the secured loan facility bore interest at LIBOR plus 6.5%.

InterOil recently spudded its Antelope-3 appraisal well in PNG's Gulf province. Its Gulf LNG project negotiations with the government over commercialising the Elk and Antelope discoveries are yet to reach an outcome.

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