Jadestone Energy plc (“Jadestone”), an independent oil and gas production company focused on the Asia-Pacific region, is pleased to announce that it has closed a US$50 million debt facility (the “Interim Facility”) with two international banks.
The closing of the Interim Facility forms part of the previously announced plan to arrange a reserves-based lending facility (“RBL”), which is a key element of Jadestone’s medium-term financing strategy to fund development capital at the Akatara project and further growth through M&A.
The Interim Facility has a term of nine months and carries an initial margin of 450 basis points over SOFR, which steps up in the event repayment occurs more than three months after closing. The RBL workstreams are progressing in line with management expectations and it is expected to close around the end of Q1 2023, superseding the Interim Facility.
Paul Blakeley, President and CEO commented:
“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. 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 M&A in the region.”