Hess gets $1 billion term loan agreement at Libor plus 225-272.5 bps

By Sarah Lizee

Olympia, Wash., March 17 – Hess Corp. entered into a term loan agreement with JPMorgan Chase Bank, NA as lead arranger, bookrunner and administrative agent on Monday, providing for up to $1 billion of commitments, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus 225 basis points to 272.5 bps, based on public debt ratings.

The facility contains provisions that require the company to reduce JPMorgan’s initial funded amount of $1 billion as of Tuesday, which the company intends to do by syndicating the loan to other lenders.

The facility will mature on March 16, 2023.

There is a financial covenant limiting the ratio of total consolidated debt to total capitalization of the company and its consolidated subsidiaries to 0.65 to 1.00.

Hess is a New York-based independent oil and gas producer.

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