BHP enters into $7.5 billion credit facility for Petrohawk acquisition

By Aleesia Forni

Columbus, Ohio, Aug. 18 - BHP Billiton Ltd. and BHP Billiton plc entered into a new $7.5 billion credit facility to help fund the company's proposed acquisition of Petrohawk Energy Corp., according to a filing with the Securities and Exchange Commission.

The facility is made up of a $5 billion 364-day term loan and a $2.5 billion 364-day multicurrency revolver.

Loans will bear an initial interest rate of Libor plus 50 basis points. The rate will increase to Libor plus 70 bps after four months and Libor plus 90 bps after eight months.

Barclays Bank PLC is the facility agent, dollar swingline agent and euro swingline agent.

Proceeds will be used to help fund BHP's acquisition of Petrohawk, to refinance Petrohawk debt and for costs of the transaction.

BHP is a London-based company focused on discovering and developing natural resources.

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