Serica Energy signs new $525m RBL facility

18th Dec 2023 09:00

(Sharecast News) - Exploration and production company Serica Energy revealed on Monday that it has signed a new $525.0m reserves-based lending facility, "significantly" increasing its liquidity to support future acquisitions and investments.

Serica said the new RBL facility replaces its existing one, as well as junior facilities. The existing RBL facility has $271.0m drawn and will be fully repaid upon completion of the new RBL facility, which is expected to occur in January 2024.

The AIM-listed group noted it also has the option of potentially doubling the RBL facility to over $1.0bn through an accordion feature.

Serica added that the debt's maturity date was 31 December 2029, with amortisation commencing on 31 December 2026.

Chief executive Mitch Flegg said: "I am very pleased to announce the signing of a new RBL facility which substantially enhances Serica's financial firepower. This has been achieved in a challenging market for upstream financing. The standing of the international banks in the lending syndicate reflects the quality of Serica's asset portfolio, strong balance sheet and ambitions for further growth.

"The new facility, combined with our existing attributes, means that Serica can approach acquisition and investment opportunities from a position of considerable strength."

As of 0925 GMT, Serica shares were up 1.74% at 210.60p.

Reporting by Iain Gilbert at Sharecast.com