Det norske oljeselskap ASA (“DETNOR”) provides an update on its debt funding.
Subject to closing of the BP Norge transaction, the company has made certain changes to its two bank facilities, including an increase in its reserve-based lending (“RBL”) facility from USD 3.0 to 4.0 billion and certain amendments to the documentation. In addition, the RBL facility includes an uncommitted accordion option of USD 1.0 billion.
The dividend restriction has been removed from the loan agreements, but an incurrence test of 4.5x (Net interest-bearing debt / EBITDAX) has been introduced.
Subject to perfection of the security package, the new borrowing base has been set at USD 3.6 billion until the end of 2016.