Salamander gets US$350m loan

By Ruli Setiawan

London-based energy firm Salamander Energy announced that it had signed two new borrowing facilities totaling $350 million.

These facilities extend the maturity of the Group's financing, simplify Salamander's borrowing structure and lower its cost of debt, the company said in a press statement on Wednesday.

The new financing arrangement comprises of a $300 million seven-year senior reserve based lending facility and secured against expected cash flow from the Group's producing assets, as well as a $50 million two-year facility, which will be used to finance the development of the Kerendan gas field.

As development of the Kerendan field proceeds, it is envisaged that the shorter-term borrowings will be folded into the new reserve based lending facility, which will then expand to $350 million.

Salamander's existing $325m borrowing base facility ($250m Senior and $75m Junior) will be cancelled when the new facilities come into effect.

Salamander's new facilities have been arranged and underwritten by BNP Paribas and Standard Chartered, and (for the Reserve Based Lending facility only) the International Finance Corporation as original mandated lead arranger (through the restatement and increase of an existing commitment). BNP Paribas and Standard Chartered will commence syndication shortly.

"We are pleased that with the continued support of our relationship banks we have been able to enter into new, increased and more flexible debt facilities. These new facilities simplify the Group's borrowing structure and extend the maturity of its debt,? said Jonathan Copus, Chief Financial Officer of Salamander.

They also improve the efficiency of Salamander's balance sheet by more fully recognizing the significant organic reserve growth that has been delivered across the Group in the past 12 months."

Editing by Benget Besalicto Tnb.