Lundin completes $5 billion refinancing facility with improved pricing

By Taylor Fox

New York, Dec. 14 – Lundin Energy AB completed the refinancing of its existing secured $4.75 billion reserves-based lending facility and $500 million of other corporate facilities into a lower-margin $5 billion five-year corporate facility, according to a news release.

The new facility is a combination of a five-year $1.5 billion revolver and $3.5 billion of term loans split across two-, three-, four- and five-year maturities.

The average margin across the new facility is an improved 160 basis points above Libor, decreased from 250 bps above Libor.

The facility also includes the option to bring in additional commitments in an accordion option of up to $1 billion.

ESG key performance indicators on carbon intensity and renewable electricity generation have also been incorporated into the margin payable, giving the company further financial incentives to deliver on its decarbonization strategy and 2030 carbon neutrality target.

The structure of the facility is compatible with unsecured bond issuances through the debt capital markets at pari passu terms, which could be utilized to diversify the company’s capital structure.

Lundin Energy is an oil and gas company based in Stockholm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.