Sterling has signed new banking facilities with an initial borrowing base of $160.3 million and with the flexibility to increase this to up to $265 million. The new facilities have a term of 6 years at a current rate of interest of 6.9% pa.
Syndication by the lead bank, Natixis, is in progress. The new facilities complete the refinancing of Sterling’s existing bank facilities.
All conditions relating to the refinancing have been met and drawdown of $153.8 million has been made. As is usual, there is a borrowing base review every six months with the first one effective mid-January 2008.
"This is a major achievement, particularly in light of current credit market conditions, as it refinances all of Sterling's debt which principally arise from the early 2007 Whittier deal," said Finance Director Graeme Thomson. "It now gives Sterling a known platform on which to build its borrowing base and will greatly extend its banking relationships."
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