Malaysia-based SapuraKencana Petroleum Berhad has concluded and signed a $5 billion (MYR16.5 billion) refinancing club deal with 13 local, regional, and international banks.
The refinancing program was put in place to replace and streamline facilities that were inherited following the merger of SapuraCrest Petroleum and Kencana Petroleum in 2012. It was also undertaken for the financing of the Group's two most recent acquisitions: the Seadrill tender-rig business, which has since been renamed SapuraKencana Drilling; and the purchase of the entire equity interest in Newfield Malaysia Holding Inc.
Approximately 80% or $3.9 billion (MYR13 billion) of the refinancing package is dedicated for assets that are fully contracted out to independent oil companies and national oil companies.
The interest from lending institutions was overwhelming and exceeded the $5 billion (MYR 16.5 billion) that was required by the Group. The club deal constitutes a senior multicurrency term and revolving facilities with short- and long-term tenures of up to seven years.
Maybank Investment Bank and CIMB Investment Bank were the coordinating banks, while Maybank Investment Bank acted as the agent and the security agent.