Amadeus Energy (ASX: AMU), an oil and gas producer and explorer based in Perth, Western Australia, has completed new financing arrangements with a US banking syndicate led by BNP Paribas.
Under the new arrangements the company’s senior and subordinate debt facilities have been discharged and replaced with a new single senior facility with a term of three years. As a result the company no longer has any subordinate debt.
The company said the terms of the new senior facility are a material improvement on the previous facilities and will deliver annual finance cost savings of approximately US$1.5 million.
An additional US$1 million in annualised finance cost savings has been realised over the past twelve months through an US$11 million reduction in the company’s outstanding debt.
The financial covenants in the new facility are consistent with those of the previous facilities.
Geoffrey Towner, managing director, said the new senior facility of US$51 million is currently drawn to US$44.6 million and investors should note that the current net debt position of the company is US$40 million.
To facilitate the new financing arrangements and specifically the three year financing term, the company will enter into additional oil and gas hedge contracts.
Under the terms of the new financing arrangements no more than 50% of the company’s projected production will be hedged.