Det norske Secures Funds for New Developments (Norway)
Det norske oljeselskap ASA has entered into a USD 1 billion revolving credit facility, equivalent to NOK six billion, with a group of Nordic and international banks. The facility contains an uncommitted accordion option which could increase the facility to USD 2 billion, equivalent to NOK twelve billion.
“We are very pleased with the support Det norske has received from leading banks. This strengthens Det norske’s liquidity position, as we as operator have started the development of the Ivar Aasen field, and are to enter the development of the Johan Sverdrup field. The banks’ willingness to support the facility highlights the quality of our asset base,” Det norske CFO Alexander Krane said.
The loan documents were signed on 3 September 2013. The Bookrunners and Mandated Lead Arrangers DNB, Nordea and SEB led the syndication process. Other strong Nordic and international banks are also participating in the funding.
The facility matures five years from the signing date. The USD 1 billion facility replaces the company’s USD 500 million tranche with maturity 31 December 2015.
The new loan carries an interest of NIBOR/LIBOR + 3 per cent p.a. and a utilisation fee of 0.5 per cent or 0.75 per cent p.a based on the amount drawn under the facility.
In the past twelve months, Det norske has also issued NOK 1 billion in equity and issued NOK 1.9 billion in unsecured bonds.
Press Release, September 10, 2013