LONDON (ShareCast) - (Sharecast News) - EnQuest confirmed it had secured new loan facilities totalling $800m on Monday, sending shares in the North Sea operator higher.
The London-listed oil and gas producer, which also has operations in south east Asia, said it had signed new, six-year senior secured reserves based lending (RBL) facilities.

Totalling $800m, it comprises a $400m secured revolving credit facility (RCF) and a $400m secured revolving letter of credit (LoC), as well as an accordion of up to $800m.

The accordion gives EnQuest the potential to extend both facilities by up to $400m each.

The funds, which are being provided by a syndicate of eight banks, including both current and new lenders, will be used to refinance EnQuest's existing $500m RBL facility.

Chief financial officer Jonathan Copus said: "These new facilities...provide EnQuest with an enhanced capital structure that is simple, flexible and aligned with our growth ambitions."

As at 1145 GMT, shares in EnQuest were 4% stronger at 11.74p.

Shore Capital, which has a 'buy' rating on the stock, said: "Management has been clear around its ambitions to pursue transformational acquisition opportunities in the UK. It has also been expanding the south east Asian portfolio over the last two years.

"The new RBL facilities include an accordion option to double the size of both the RCF and LoC facilities, which we believe EnQuest could use to help fund a material transaction."

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