(EnergyAsia, July 22 2013, Monday) — NYSE-listed InterOil Corp said it and subsidiaries, EP InterOil and InterOil Limited, have secured a US$350 million working capital structured facility arranged by BNP Paribas (BNP), also acting as lead manager, to replace an existing $240.0 million bilateral working capital facility with the French bank.
A five-bank syndicate comprising BNP, Australia and New Zealand Banking Group Limited (ANZ), Natixis, Intesa Sanpaolo (Intesa), and Bank South Pacific Limited (BSP), will provide a total of US$270 million as secured working capital while BNP will extend an US$80 million bilateral non-recourse discounting facility.
The loan will support the operational requirements of the Napa Napa oil refinery in Papua New Guinea (PNG), and will be secured by InterOil’s rights, title and interest in inventory and working capital of the refinery.
The banks will charge an interest of 3.75% over LIBOR for the loan’s credit portion, said US-based InterOil.
The deal is subject to the Bank of Papua New Guinea’s approval on the proposed use of the refinery assets as collateral, among other standard closing conditions.
Collin Visaggio, InterOil’s chief financial officer, said:
“We are delighted to have strengthened our banking relationship with BNP who have led our existing working capital facility since 2004, and broadening our relationships with existing financiers like ANZ, BSP, and new syndicate partners
Natixis and Intesa.
“The financing will assist with the ongoing operational activities of the refinery, which has experienced consistent growth over the past five years.”
InterOil Corp is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. The Houston, Texas-based company’s assets consist of petroleum licences covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea.