EnQuest PLC said Friday that it has agreed to a new debt facility for $750 million, and that this will enable it to simplify its existing capital structure and finance an acquisition.
The London and Stockholm-listed energy company said it has signed a new senior secured borrowing base debt facility of around $600 million as well as an additional amount of $150 million for letters of credit for up to seven years.
The company said the funds will allow it to repay in full its existing senior financing agreement, the Sculptor capital facility, and the outstanding BP vendor loan associated with the acquisition of a 75% interest in U.K. asset Magnus.
EnQuest added that it will also use the new facility to acquire a 26.69% interest in the Golden Eagle field located in the North Sea.
“I am delighted to have agreed this new facility. It enables the refinancing and simplification of our existing capital structure and the acquisition of the Golden Eagle assets which will add material value, production and reserves to EnQuest,” Chief Financial Officer Jonathan Swinney said.
Shares at 0725 GMT were up 0.90 pence, or 4.7%, at 20.20 pence.