FAR Ltd to pursue conventional bank lending option to finance SNE oil field development

FAR Ltd (ASX:FAR) will pursue a conventional bank lending arrangement as the preferred financing option for the development of the world-class SNE oil field offshore Senegal.

This follows a pleasing response to the companys financing investigations from a range of Australian and international banks.

As part of this process FAR has appointed Macquarie Bank Limited as an arranger of a debt facility to arrange and manage the syndication of the facility.

“Significant interest”

FAR managing director Cath Norman said, “On October 30, FAR released the economic data for the development of the world-class SNE oil field.

“SNEs robust project economics, underpinned by attractive fiscal terms and an experienced offshore operator, has seen significant interest by banks over the last three months in providing a debt facility."

For some time FAR has been seeking the best debt financing solution for the company and this process has involved investigating a broad range of options.

Facility details

The facility that Macquarie Bank will be seeking to arrange includes:

  • Amount of up to US$350 million;
  • 7-year term;
  • All-in interest below 10% (margin + LIBOR) (payable on drawn funds);
  • Commitment fee of 40% of margin (payable on undrawn funds); and
  • Senior secured on FARs 13.67% inRead More – Source

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