SINGAPORE and PORT MORESBY, Papua New Guinea, Feb. 7, 2017 /PRNewswire/ -- InterOil
Corporation (NYSE: IOC, POMSox: IOC) today announced that it has
entered into a new US$470 million
senior secured credit facility. Once the conditions precedent are
satisfied, the new facility will refinance and replace the existing
US$400 million secured capital
expenditure facility.
As noted in the management information circular mailed to
securityholders in relation to the proposed transaction with Exxon
Mobil Corporation (NYSE: XOM) ("ExxonMobil"), InterOil's
independent Transaction Committee ("the Committee") has had numerous discussions regarding
InterOil's financial position and recognized that the availability
of additional capital would be important to InterOil on a
going-forward basis. As such, in order to ensure that InterOil
would have sufficient capital to meet its ongoing expenditure
obligations, the Committee recommended to
the Board that management of InterOil continue to explore the availability of
additional funding options. Today's announcement is the culmination
of those efforts and has been approved by
the full Board.
The facility is secured at an annual interest rate of LIBOR plus
6.5% and terminates at the end of 2017. In addition, if InterOil
receives the interim resource certification payment (as
contemplated by the share purchase agreement dated March 26, 2014 between subsidiaries of InterOil
and Total S.A.) prior to the closing of the proposed transaction
with ExxonMobil, the amount of such payment must be used to repay
amounts outstanding under the facility. Lenders in the facility
include Australia and New Zealand
Banking Group Limited (ANZ), Intesa Sanpaolo SPA, Westpac PNG
Limited, Bank of South Pacific Limited, Macquarie Bank Limited,
Credit Suisse AG, Morgan Stanley and UBS AG. The financing was led by ANZ who acted as Structuring and
Documentation Bank. The senior secured credit facility agreement is
available under InterOil's SEDAR profile (available at
www.sedar.com) and on EDGAR (available at www.sec.gov).
About InterOil
InterOil Corporation is an independent oil and gas business with
a sole focus on Papua New Guinea.
InterOil's assets include one of Asia's largest undeveloped gas fields,
Elk-Antelope, in the Gulf Province, and exploration licenses
covering about 16,000sqkm. Its main offices are in Singapore and Port
Moresby. InterOil is listed on the New York and Port
Moresby stock exchanges.
Investor Contacts
Singapore
|
United
States
|
|
David Wu
Senior Vice
President
Investor
Relations
|
Cynthia
Black
Investor
Relations
North
America
|
|
T: +65 6507
0222
E:
david.wu@interoil.com
|
T: +1 212 653
9778
E:
cynthia.black@interoil.com
|
|
Media Contacts
James Golden / Aaron
Palash
Joele Frank,
Wilkinson Brimmer Katcher
|
T: +1 212 355
4449
E:
ioc-jf@joelefrank.com
|
Forward Looking Statements
This communication includes "forward-looking statements". All
statements, other than statements of historical facts, included in
this communication are forward-looking statements. Such
forward-looking statements may include, without limitation,
statements regarding the conditions precedent to the new
credit facility, the sufficiency of capital to meeting InterOil's
ongoing expenditure obligations, the availability of
additional capital to InterOil on a going-forward basis,
the pending transaction with ExxonMobil, the timing to
consummate the proposed transaction with ExxonMobil, the ability to
satisfy the conditions to consummation of the proposed transaction
(including, but not limited to, approval by InterOil shareholders
and the required approvals from the Yukon courts), the timing or outcome of the
resource certification process for the Elk-Antelope field as
applicable to the contingent resource payment. These
statements are based on the current belief of InterOil, as well as
assumptions made by, and information currently available to
InterOil. No assurances can be given however, that these events
will occur. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
InterOil, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements. These
include in particular assumptions, risks and uncertainties relating
to the fact that the new credit facility
will increase the availability of capital on a
going-forward basis, the risk that a condition
to closing of the proposed acquisition may not be satisfied
(including obtaining required approval of InterOil shareholders and
the required orders from the Yukon
court with respect to the transaction), the timing or outcome of
the resource certification process for the Elk-Antelope field as
applicable to the contingent resource payment, the
size of the resources in the Elk-Antelope field or any change in
the estimate or calculation of such resource size, the outcome of
the drilling of the Antelope-7 well, and other risk factors
discussed in the Circular, InterOil's
annual report for the year ended December
31, 2015 on Form 40-F and its Annual Information Form for
the year ended December 31, 2015, and
under the heading "Factors Affecting Future Results" available
through the "Investors" section on ExxonMobil's website and in Item
1A of ExxonMobil's 2015 Form 10-K. InterOil disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable laws.
Legal Notice
None of the securities anticipated to be issued pursuant to
the ExxonMobil transaction have been or will be registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws, and any securities
issued pursuant to the ExxonMobil transaction are anticipated to be
issued in reliance upon available exemptions from such registration
requirements pursuant to Section 3(a)(10) of the U.S. Securities
Act and applicable exemptions under state securities laws. This
document does not constitute an offer to sell or the solicitation
of an offer to buy any securities.
There can be no assurance that the transaction with
ExxonMobil will occur. The ExxonMobil transaction is subject to
certain approvals and the fulfillment of certain conditions, and
there can be no assurance that any such approvals will be obtained
and/or any such conditions will be met.
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SOURCE InterOil Corporation