New Interoil Financing

[jft310]

InterOil Corporation (NYSE: IOC, POMSox: IOC) today announced that it has entered into a new US$470 million senior secured credit facility. Once the conditions precedent are satisfied, the new facility will refinance and replace the existing US$400 million secured capital expenditure facility.   As noted in the management information circular mailed to Securityholders in relation to the proposed transaction with Exxon Mobil Corporation (NYSE: XOM) ("ExxonMobil", InterOil’s independent Transaction Committee (“the Committee&rdquo has had numerous discussions regarding InterOil’s financial position and recognized that the availability of additional capital would be important to InterOil on a going-forward basis. As such, in order to ensure that InterOil would have sufficient capital to meet its ongoing expenditure obligations, the Committee recommended to the Board that management of InterOil continue to explore the availability of additional funding options. Today’s announcement is the culmination of those efforts and has been approved by the full Board.   The facility is secured at an annual interest rate of LIBOR plus 6.5% and terminates at the end of 2017. In addition, if InterOil receives the interim resource certification payment (as contemplated by the share purchase agreement dated March 26, 2014 between subsidiaries of InterOil and Total S.A.) prior to the closing of the proposed transaction with ExxonMobil, the amount of such payment must be used to repay amounts outstanding under the facility. Lenders in the facility include Australia and New Zealand Banking Group Limited (ANZ), Intesa Sanpaolo SPA, Westpac PNG Limited, Bank of South Pacific Limited, Macquarie Bank Limited, Credit Suisse AG, Morgan Stanley and UBS AG. The financing was led by ANZ who acted as Structuring and Documentation Bank. The senior secured credit facility agreement is available under InterOil's SEDAR profile (available at www.sedar.com) and on EDGAR (available at www.sec.gov)

[bdahl385]

So Dr. "LIBOR plus 6.5%" has already burned out the existing credit line and needs extra money to make it thru buyout. Sickening and sad....

[jft310]

Stupid to borrow money at those rates when they have the Total contract and a buyout . Who got paid to do this deal ????

[sageo]

So Dr. "LIBOR plus 6.5%" has already burned out the existing credit line and needs extra money to make it thru buyout. Sickening and sad....

Amen to that,Bdahl - So sickening and sad that a small band of us can see the truth,and so many others can't.....or just don't care . It never ceases to amaze me. My best to you & yours .

[Palm]

The cash burn is certaainly huge and likely has to do with their share of the Ant 7 drilling, the continuation of the sale of the company and paying these clowns to do a bad job with everything. They are spending a ton on Ant 7 drilling and the "fruits" will likely be nil. Per the OSH documentation Ant 7 will be one of the most expensive adventures. Besides paying off this LOC with any certification payment, any carry from Total would also be deducted. There will basically be zippo left.

Nice job fellas.