Centurion Negotiates Higher Debt Capacity
Calgary-based Centurion Energy International, Inc. and French bank BNP Paribas have signed a term sheet and mandate letter that will give Centurion access to $US215 million of debt capacity available immediately upon closing. The new debt facility will replace the existing facility with another lender, currently limited to $US100 million.
The BNP Paribas debt facility consists of three different tranches including a 5-year $US140 million borrowing base loan; a US$50-million revolving credit facility secured by accounts receivable from the sale of hydrocarbons to the Egyptian Government; and $US25 million tranche which is available for issuing performance and work commitment bonds. Proceeds from the new debt facility will be used to repay existing outstanding debt and to supplement cash flow from operations to the extent necessary to fund the remaining 2006 and anticipated 2007 capital budgets.
Centurion and BNP Paribas anticipate that closing can occur before the end of July 2006.