$100 Mill Loan Approved

[Stavros]

6 Month Libor is 0.62%

[Palm]

And people still doubt that the PRE deal had any affect on things. This spring Duma reiterated that PNG wants up to 50%; PRE deal gets done to set a "market" price. Ok Mr Duma, here is your price for anything over 22.5%; structure it how you want it and we can git er done

[Palm]

Some are semi-shocked that they were able to secure this $100 million loan. Can't be that banks are suddenly so flush with cash that they just had to get it loaned out. As anyone knows there must be justification for an asset loan like this; usually cash flow projections that are fairly certain. What if part of the package to the banks was to show what was going on AND the increased production that will be happening at the refinery? Hmmmm, banks just might go for that given enough certainty.

Another thought. Once again we are in OE week and many games get played. What if someone got wind that this IOC announcement was happening today and this letter just happened to get leaked to the WSJ in an attempt to make it look like IOC is desperate and other bidders just aren't there, or might back away. It's been done before.

[Tree]

Something old, something new, this loan approval got buried by a + memo leaked as - to you

**********

US$100 million loan facility

By Online Editor
12:58 pm GMT+12, 18/10/2012, Papua New Guinea

Bank South Pacific (BSP) Wednesday announced that it has entered into a five-year amortising US$100 million syndicated secured term loan facility with InterOil, as co-lead arranger along with BNP Paribas Singapore branch and Australia and New Zealand Banking Group (PNG) Ltd.

Borrowings under the facility will be used by InterOil for repayment of all outstanding amounts under the term loan granted by Overseas Private Investment Corporation (OPIC) and general corporate purposes.

The loan is secured by InterOil’s right, title and interest in the fixed assets of the Napa- napa Refinery in Papua New Guinea.

Collin Visaggio, InterOil’s chief financial officer, remarked: “We are delighted to have extended our banking relationship with BSP.

“This financing should allow us to maintain our accelerated pace of upstream activity while we complete our negotiations with the state of PNG and conclude our LNG partnering process.

“At this stage, we are pleased by the constructive dialogue with the state and the increased interest in investment in Papua New Guinea following the successful election and formation of the strongest coalition government in the country’s history.”

Ian B Clyne, BSP Group chief executive, said: “We are proud as a Papua New Guinea bank to be involved as co-lead arranger of this international syndication, and being able to strength our partnership with InterOil, one of PNG’s leading organisations.

“Both companies are committed to this emerging nation and its local communities.”

Clyne noted that foreign currency lending was an outcome of the bank’s transformation programme as it looked to provide whole of bank solutions to Papua New Guinean and international businesses.

“Our commitment to our people, customer care and innovation set us apart from our competitors across the South Pacific,” he said.

“We are working with InterOil on a number of initiatives to build on our strategic partnership, including the opening of a BSP Rural branch in Kerema to support the next phase of InterOil’s exciting LNG project that will further enhance PNG’s reputation in the international community.”

BSP general manager corporate banking Peter Beswick noted: “We have capabilities and financial solutions for international companies coming to PNG.  

“Our team has extensive local knowledge that enables them to partner with customers to get things done.

 “The team is supported by a market leading range of corporate financial solutions covering foreign exchange, business internet banking, electronic payroll processing, working capital and transaction facilities, cash management, asset finance and an extensive range of kina and foreign currency lending solutions.”

[Palm]

Tree, isn't that you on the left?

[johnwgrant]

From the 11/14/12 Q3 Statements -- this gives me some comfort (on a very bleak down day for IOC stock)...

15. Subsequent events
On October 16, 2012, the Company entered into a five year amortizing $100.0 million secured term loan facility with BNP
Paribas Singapore, Bank South Pacific Limited, and Australia and New Zealand Banking Group (PNG) Limited.
Borrowings under the facility have been used for repayment of all outstanding amounts under the term loan granted by
OPIC and will also be used for general corporate purposes. The loan is secured over the assets of the refinery and bears
interest at LIBOR plus 6.5%. All closing conditions were completed and amounts drawn down on November 09, 2012.
The OPIC term loan was also subsequently repaid on the same date.

[Stavros]

To my humble opinion, IOC must do all of the following in the CC:

1. Announce that they have NEC Approval for their application to ammend the 2009 Project Agreement
2. Give details of the NEC approval
3. Announce who all the Sell Down bidders are
4. Reveal the current highest bid price submitted by the bidders
5. Inform the absolute latest date that a Sell Down will be consumated
6. Inform as to what role EWC will play
7. Inform as to what will be included in the much-touted FID that will come immediately after NEC Approval/ Sell Down

If they don't do all of the above then we will see a share price below 45 by Friday afternoon because silence infers what the answers are (even if the inference is dead wrong).

If that's not what you want to see, then do whatever it takes to contact IOC Management before the CC and implore them to do the needful.

[johnwgrant]

To my humble opinion, IOC must do all of the following in the CC: 1. Announce that they have NEC Approval for their application to ammend the 2009 Project Agreement 2. Give details of the NEC approval 3. Announce who all the Sell Down bidders are 4. Reveal the current highest bid price submitted by the bidders 5. Inform the absolute latest date that a Sell Down will be consumated 6. Inform as to what role EWC will play 7. Inform as to what will be included in the much-touted FID that will come immediately after NEC Approval/ Sell Down If they don't do all of the above then we will see a share price below 45 by Friday afternoon because silence infers what the answers are (even if the inference is dead wrong). If that's not what you want to see, then do whatever it takes to contact IOC Management before the CC and implore them to do the needful.

I would be quite happy if Items #1 & #2 were completed and announced tomorrow !!!     IMHO, PNG gov't is the holdup right now.   Things will move quickly once the "log-jam" is broken!

[Tusker]

Tree, isn't that you on the left?

I like the shirt.  

Could be.

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