Serica Energy PLC (AIM:SQZ) said its new US$525 million debt line, replacing the current borrowing facilities, will be used to fund investment as well as the North Sea driller's acquisition aspirations.
The new borrowing facility, structured as a revolving credit accessible in multiple currencies, offers Serica greater financial flexibility compared to its existing arrangements.
The current line, from which US$271 million has been drawn, will be fully repaid with the activation of the new plan on 1 January.
"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," said Serica chief executive Mitch Flegg.
"The new facility, combined with our existing attributes, means that Serica can approach acquisition and investment opportunities from a position of considerable strength."
The structuring and coordination of the facility have been managed by DNB and ING Bank N.V., with additional support from Nedbank CIB, Natixis, London Branch, and ICBC Standard Bank.
There may, at a later date, be the potential to increase the debt headroom to US$1 billion.
The interest rate for this loan is set at the secured overnight rate plus a margin of 3.90% per annum.
The shares opened 0.8p higher at 207.8p.