Salamander Energy secures 350m dollars of new borrowing facilities

published 19 December 2012

Oil and gas producer Salamander Energy has signed two new borrowing facilities together totalling 350m dollars.

The facilities are designed to extend the maturity of the group's financing, simplify Salamander's borrowing structure and lower its cost of debt.

The new financing arrangement comprises a $300m seven-year Senior Reserve Based Lending facility, secured against expected cash flow from the group's producing assets and a $50m two-year facility, which will be used to debt fund the development of the group's Kerendan gas field.

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As development of the Kerendan field proceeds, Salamander said it is envisaged that the shorter-term borrowings will be folded into the new Reserve Based Lending facility, which will then expand to $350m.

Salamander's existing $325m borrowing base facility - comprising $250m Senior and $75m Junior- will be cancelled when the new facilities come into effect.

Jonathan Copus, Chief Financial Officer of Salamander, commented: "We are pleased that with the continued support of our relationship banks we have been able to enter into new, increased and more flexible debt facilities.

"These new facilities simplify the group's borrowing structure and extend the maturity of its debt. They also improve the efficiency of Salamander's balance sheet by more fully recognising the significant organic reserve growth that has been delivered across the group in the past 12 months."