BPZ Resources, Inc. announced that Natixis, a major French bank, has obtained approval from its Credit Committee to arrange and underwrite the $200 million tranche of the $215 million reserve-based lending facility, under the terms and conditions outlined in the Mandate Letter dated August 19th, as previously disclosed by the Company.
As previously announced, the initial $15 million tranche was recently closed directly with the International Finance Corporation (IFC). The Company expects to close this $200 million tranche in the fourth quarter of this year. The overall revolving credit facility is backed by current oil reserves in the Corvina field located in the offshore Block Z-1 in northwest Peru. The two credit tranches will be governed by a Common Terms Agreement, insuring efficient cooperation between the lenders.
The closing of this tranche of the credit facility is dependent upon the successful negotiation of the related loan documents and funding is predicated on the satisfaction of certain conditions precedent as specified in the loan documents.
Manolo Zuniga, President and Chief Executive Officer, commented, "This is obviously another key milestone that moves us a step closer to securing the $200 million tranche of the $215 million reserve-based lending facility. Our finance and technical teams have worked closely with the Natixis and IFC representatives, as they carried out detailed due diligence on our ongoing projects for their respective credit committees. We will continue to work diligently towards closing this $200 million tranche as quickly as possible."
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