SapuraKencana Inks $5B Refinancing Club Deal with 13 Banks
Malaysia-based SapuraKencana Petroleum Berhad announced Thursday that the company has successfully concluded and signed a $5 billion (MYR16.5 billion) refinancing club deal with 13 local, regional and international banks.
The refinancing program was put in place to replace and streamline facilities that were inherited following the merger of SapuraCrest Petroleum and Kencana Petroleum in 2012.
It was also undertaken for the financing of the Group's two most recent acquisitions the Seadrill tender-rig business which has since been renamed SapuraKencana Drilling and the purchase of the entire equity interest in Newfield Malaysia Holding Inc.
"The completion of the refinancing program is indeed a strategic milestone for the Group post the 2012 merger. It is an endorsement of the sustainability of our business as a fully integrated upstream company and demonstrates confidence in our business direction and growth prospects," said SapuraKencana President and Group CEO, Shahril Shamsuddin.
Approximately 80 percent or $3.9 billion (MYR13 billion) of the refinancing package is dedicated for assets that are fully contracted out to International Oil Companies and National Oil Companies.
The interest from lending institutions was overwhelming and exceeded the $5 billion (MYR 16.5 billion) that was required by the Group.
“Approximately 80 percent of the Group¹s projected EBITDA for the next 3 years is already secured by contracts. We believe the ability to demonstrate this strong and visible earnings for the Group was one of the main contributors for the overwhelming interest shown by the banks to support our company." said Shahril Shamsuddin.
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