Drillsearch Energy has secured $100 million in funding.
The company has entered into a binding terms sheet for a new three-year $100 million secured bank loan facility.
The new facility will be a multi-currency, Reserve Based Lending Facility set to replace Drillsearch’s existing undrawn working capital facility, due to mature in March 2016. Drillsearch’s ability to sustain continuing growth and meet its commitments relating to its US$125 million Convertible Note will be supported by the new facility and the company’s strong oil production and cash balance of approximately $160 million.
The company has appointed its existing financiers, Commonwealth Bank of Australia and Australia and New Zealand Banking to act as Joint Mandated Lead Arrangers. Competitive financing between the two banks have enabled Drillsearch to secure attractive terms and pricing. Drillsearch chief financial officer, Ian Bucknell, is delighted by the support and commitment from the financiers, particularly given the unstable oil price environment.
“Our ability to generate additional liquidity reflects the quality of our asset base and the strength of our cash flow, even during a time of low oil prices,” he said.
The facility is subject to the finalisation and execution of facility documentation and customary conditions through to financial close.
Last month, Drillsearch appointed Walter Simpson to succeed Brad Lingo as chief executive officer.