LONDON (ShareCast) - (Sharecast News) - Asia-Pacific oil and gas producer Jadestone Energy announced the closing of a $50m (£41.88m) interim debt facility with two international banks on Friday.
The AIM-traded company said the closing of the facility was part of its previously-stated plan to arrange a reserves-based lending facility (RBL).

It described the RBL as a "significant element" of its medium-term financing strategy, which was aiming to fund development capital at the Akatara project, and further growth through mergers and acquisitions.

The firm said the interim facility would have a term of nine months, and would carry an initial margin of 450-basis points over the Secured Overnight Financing Rate (SOFR).

It added that the margin rate would step up if repayment occurred more than three months after closing.

The board said the company's RBL workstreams were progressing according to expectations, adding that it expected the RBL facility would close around the end of the first quarter, and would supersede the interim facility.

"We are pleased to partner with two international banks on this new interim debt facility, which will provide additional short-term financial flexibility as we work to conclude the RBL, our longer-term debt vehicle," said president and chief executive officer Paul Blakeley.

"The RBL will provide a much larger debt capacity, and we are making good progress with several potential lenders to conclude this around the end of the first quarter this year.

"As we always envisaged, the RBL will provide a secure funding source for the Akatara gas project in Indonesia, as well as significant flexibility for further growth options at a very exciting time for mergers and acquisitions in the region."

At 0927 GMT, shares in Jadestone Energy were up 1.1% at 86.95p.

Reporting by Josh White for Sharecast.com.

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