The oil and gas company PA Resources AB has issued a five year, unsecured bond loan of NOK 900 million (US$161 million). The company’s headquarters are in Stockholm.
The new bond loan has a final maturity date in April 2016. The bond loan is denominated in NOK but is converted to USD with a swap contract. The bond loan runs with a fixed coupon rate corresponding to approximately 10% based on USD.
The net proceeds from the issue will be used to repay an existing bond loan of US$100 million maturing in June 2011 and a bond loan of US$70 million maturing in March 2012 as well as for general corporate purposes. In connection with the issue, US$55.5 million of the outstanding bond loan maturing in 2011 and US$65.8 million of the bond loan maturing in 2012 have been repurchased by PA Resources.
Bo Askvik, president and CEO of PA Resources AB, commented, “We have now successfully refinanced all of the Group’s outstanding bond loans maturing in the next two years, and this time without security, unlike previous secured bonds.”
Fearnley Fonds ASA and Pareto Securities AS acted as financial advisors in connection with the issue of the bond loan.
PA Resources AB is an international oil and gas group with the business strategy to acquire, develop, exploit, and divest oil and gas reserves, as well as explore new findings. The company operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, United Kingdom, Denmark, Greenland, Netherlands, and Germany. PA Resources is one of the largest oil producers in Tunisia and is also producing oil in the Republic of Congo. PA Resources’ net sales amounted to SEK 2,227 million (US$353 million) during 2010. The company is listed on the NASDAQ OMX Nordic Exchange in Stockholm, Sweden (segment Mid Cap).