FX Energy gets €55 million lending facility at Libor plus 475 bps

By Angela McDaniels

Tacoma, Wash., Aug. 3 – FX Energy, Inc. finalized a €55 million senior reserve base lending facility agreement on July 28, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a €35 million accordion feature.

The facility has a term of five years, with scheduled semiannual borrowing-base reductions of 14.29% of the initial commitment amount beginning on June 30, 2017.

The interest rate is Libor plus 475 basis points. After two years, the margin will increase to 500 bps.

BNP Paribas (Suisse) SA is the coordinating mandated lead arranger. ING Bank NV is a mandated lead arranger.

The initial borrowing base at closing was set at €45.1 million, which is roughly equal to $50 million, the company’s outstanding balance at June 30.

Initial proceeds from the facility were used to repay the outstanding balance under the company’s previous credit facility. Repayment of the facility is secured by an encumbrance on the company’s oil- and gas-producing properties in Poland and all intercompany advances from the company to its Polish subsidiary and is guaranteed by the company.

FX Energy is an oil and natural gas exploration company based in Salt Lake City.

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