Meren Energy Inc (TSX:MER, STO:MER, OTCQX:MRNFF) has announced that its subsidiary, Meren Coöperatief U.A., has signed a refinancing agreement for its reserve-based lending (RBL) facility, increasing borrowing capacity and extending the company’s debt maturity profile.
The amended facility provides total commitments of $600 million, with an accordion feature that allows the facility size to expand to as much as $1 billion. The proceeds will be used to fully refinance the existing RBL facility and cover related costs.
The new facility carries an interest rate based on the Secured Overnight Financing Rate (SOFR) plus a margin of 4.00% for the first three years, rising to 4.25% in years four through six. Meren said this reflects a reduction in the average loan-life margin of 0.125 percentage points compared with the prior terms. The facility has a six-year term from closing.
"We are grateful for the continuing and strong support of our banking group,” Meren’s chief financial officer Aldo Perracini said in a statement.
“The reduction in borrowing costs and greater than two times level of oversubscription underscore the quality of our production assets and our demonstrated track record of disciplined financial delivery".
As a revolving credit facility, the RBL allows Meren to draw and repay funds up to the lower of the total commitment or the borrowing base, providing flexibility to manage capital needs. The accordion feature also offers the option to increase commitments to support future growth.
As of December 31, 2025, Meren had $468 million of available capacity under its existing RBL facility, with $330 million drawn. Following the refinancing, the company expects capacity to rise to approximately $574 million, with outstanding principal of about $370 million.
Meren said all conditions precedent have been satisfied and the transaction is expected to close shortly.