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10-16-2012, 10:26 PM
(This post was last modified: 10-16-2012, 10:36 PM by Tree.)
Yen Yell.
Head's up on the announcement from an aspiring sleuth.
Many pleased and proud partners made the loan possible.
Now where is that photo op??
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InterOil Enters Into $100 Million Secured Loan Facility
 Press Release: InterOil Corporation – 18 minutes ago
PORT MORESBY , Papua New Guinea and HOUSTON , Oct. 16, 2012 /CNW/ - InterOil Corporation (IOC) (IOC) announced that IOC and its subsidiaries, EP InterOil and InterOil Limited, have entered into a five year amortizing $100 million secured term loan facility with BNP Paribas Singapore (BNP), Bank South Pacific Limited (BSP), and Australia and New Zealand Banking Group (PNG) Limited (ANZ).
Borrowings under the facility will be used for repayment of all outstanding amounts under the term loan granted by Overseas Private Investment Corporation (OPIC) dated June 12, 2001 (currently net after Debt Service Reserve Account at $25.4 million ), 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 .
The secured loan facility bears interest at LIBOR plus 6.5%. Approval has been received from Bank of Papua New Guinea , and funding is subject to release by OPIC of all securities under the existing loan agreement, and other standard closing conditions.
InterOil is pleased to have the support and confidence of three of the largest banks operating in the South Pacific. Collin Visaggio, InterOil's CFO remarked, "We are delighted to have extended our banking relationship with BNP which has led our existing $240 million working capital facility since 2005, and strengthened our existing relationship with BSP, Papua New Guinea's largest bank, and ANZ, one of the region's largest lenders. This financing should allow us to maintain our accelerated pace of upstream activity while we complete our negotiations with the PNG State 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 Clyne , BSP Group CEO, commented, "We are proud as a Papua New Guinea bank to be involved as co-lead arranger of this international syndication, and being able to strengthen our partnership with InterOil, one of PNGs leading organisations. InterOil and BSP, are committed to this emerging nation and its local communities."
Mark Baker , ANZ CEO PNG commented: "InterOil has been a long and valued relationship of ANZ and we are pleased to extend our industry know how and balance sheet support as Mandated Lead Arranger in this transaction. As an international bank with a 100-year presence in PNG and an extensive network across Asia Pacific, we are focused on providing international financial expertise and regional specialists to support the development of key industries in PNG for the benefit of our clients and the wider community."
Pierre Joseph Costa , BNP Paribas' Regional Head for Structured Finance APAC and Japan , commented: "We are proud to be part of the changing landscape in PNG, and this loan marks a further commitment of the Bank's relationship with InterOil, whom we have been partnering with since 2005."
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Nice Treedaddy. Is this the beginning of rapid-fire announcements? Sorry; didn't mean to incite speculation.
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'Palm' pid='11259' datel Wrote:Nice Treedaddy. Is this the beginning of rapid-fire announcements? Sorry; didn't mean to incite speculation.
Could be McDuck.
When I lend out $100 Mill, I expect to be re-paid and I also expect to see how the borrower CAN satisfy repayment.
A SD would take care of that I'd guess.
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Agree; they know that any excess cash flow from operations goes to exploration. They have assurances that the SD/NEC approvals are at hand I would think. Since it's the Bank of PNG I would guess they have some ties to govt officials that said, "Yeah, they'll be good for it."
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Anybody know what IOC was paying OPIC, and just what does "currently net after Debt Service Reserve Account at $25.4 million" mean? Libor +6.5% for a five year term secured by a guaranteed profitable refinery doesn't sound like a really great rate to me, but then I suppose the banks have to get their share too, don't they?
Wonder what the terms are regarding early repayment.
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'ArtM72' pid='11265' datel Wrote:Anybody know what IOC was paying OPIC, and just what does "currently net after Debt Service Reserve Account at $25.4 million" mean? Libor +6.5% for a five year term secured by a guaranteed profitable refinery doesn't sound like a really great rate to me, but then I suppose the banks have to get their share too, don't they? Wonder what the terms are regarding early repayment.
Artm72,
Here is previously post: http://shareholdersunite.com/mybb/showthread.php?tid=1702&pid=10459#pid10459 It notes, "Currently, there is around 31 million remaining on the OPIC loan and it has restrictions on “limitations on the incurrence of additional indebtedness for the refining operations” so if 100 million is indeed the loan amount proceeds would be 69 million. Also, note the OPIC loan started at 85 million at Libor plus 4.4%. Much different interest rate environment then, but curious what the new terms would be. More cent Mitsui loan is Libor plus 6%."
Best,
Sam
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'Palm' pid='11262' datel Wrote:Agree; they know that any excess cash flow from operations goes to exploration. They have assurances that the SD/NEC approvals are at hand I would think. Since it's the Bank of PNG I would guess they have some ties to govt officials that said, "Yeah, they'll be good for it."
Gee, Today Loan Impasse Box Checked. Logic say Gulf PA Approval Impasse Box Checked Next.
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Impasse Schmimpasse; If this WSJ article is legit (likely) it hasn't been an impasse but a Holy Schimpasse. You want how much of EA?!! Ok but you do know you must pay a market price on anything above 22.5%, right? And you know we just did a deal on a much less proven field at x, right? Ok. If you can get the NEC to go for it and prove up the funding, we likey!
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Honestly at this point I'm fine with giving the PNG govt a good deal...here is why...1) Even if we sell them another 28% at $1mcf that still puts a "value" on the whole project which in turn bumps ioc up to the 110-115 range. 2) as we all know on this board E/A is just the tip of the iceberg and the only two things that have kept ioc from drilling/exploring more rapidly has been Cash & Govt support. A sell down of any nature solves problem 1 & gives us enough cash to go develop our other prospects and a sell down in which the govt and People of PNG get a "good deal" helps drastically to solve problem two. Even Morgan Stanley said in their article yesterday that they believe people will soon stop valuing the "risk of PNG" and start valuing the assets of IOC. This goes to show you right there that a lot of the "lack of publicity" and probably one the strongest reasons for the large short position has much more todo with PNG then IOC
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'Palm' pid='11271' datel Wrote:Impasse Schmimpasse; If this WSJ article is legit (likely) it hasn't been an impasse but a Holy Schimpasse. You want how much of EA?!! Ok but you do know you must pay a market price on anything above 22.5%, right? And you know we just did a deal on a much less proven field at x, right? Ok. If you can get the NEC to go for it and prove up the funding, we likey!
Confucious Say - This grab of 50% of E/A has XOM dry gas agreement written all over the Schmimpasse. Phil said he had a deal at $5-$7/M, that is less than PNG LNG's gas cost of $7.5. Of that PNG received a minor cut and IOC made out like banditos. Duma no likie and PNG want 4T gas to sell themselves to XOM. Anyone really think that PNG will develop their own LNG facility? Only if it's a Hoegh FLNG or such and only if XOM proves up additional resource. Best route is to pay IOC market rates which was $2.85 PRE?? and flip the gas to XOM at $4-$5, with the OT dedicated to Chobama at a discount as XOM can acheive it's profit margin a buck or 2/M less by buying E/A gas. This also get's Chobama into PNG/EA in a politically acceptable manner. CNOOC barging in would be politically difficult for the West.
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