BPZ Closes Secured Debt Financing
BPZ has closed a $40 million secured debt financing with Credit Suisse AG. The debt will be secured by the three LM6000 gas-fired turbines recently purchased by Empresa Eléctrica Nueva Esperanza S.R.L., a subsidiary of BPZ Resources, Inc. In addition, BPZ Resources, Inc. and its subsidiary BPZ Exploración & Producción S.R.L., have agreed to be named guarantors on an unsecured basis.
The secured debt facility matures July 2013 with principal repayment due in equal quarterly installments over the last year. The loan bears interest at three month LIBOR plus 7.0%. In addition, the loan contains an arranger fee based on the principal amount and the performance of the price of crude oil (Brent) from closing date to repayment date, subject to a cap. Proceeds from the financing will be utilized to meet the 2011 capital expenditure budget, exploration and development work programs, and debt reduction.
Ed Caminos, Chief Financial Officer commented, "This financing provides BPZ with a cost competitive, non-dilutive source of funding and strengthens our ability to meet the 2011 exploration and production capital expenditures budget. Our next debt financing objective is to secure a reserve based lending facility backed by the Corvina oil reserves, now that the field is under commercial production, in order to continue to execute our exploration and development programs related to our extensive asset base in northwest Peru."
- BPZ Energy to Recommence Drilling Ops at Peru Block Z-1 (Jan 23)
- Wison Group, BPZ Energy Tout World's First Buoyant Tower Sail Away (Aug 07)
- BPZ Energy Secures Permit Extension at Albacora Field (Jul 03)