EnQuest PLC Term loan facility agreement (5115K)

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RNS Number : 5115K

EnQuest PLC

25 August 2023

EnQuest PLC, 25 August 2023

Agreement of term loan facility

EnQuest PLC ('EnQuest' or the 'Group') is pleased to announce it has agreed a term loan facility (the 'loan') of up to $150 million, maturing in July 2027, which will rank junior to the Group's existing $500 million reserve based lending facility (the 'RBL') as a secured second lien instrument within the capital structure. As at 31 July 2023, only $240 million of the RBL facility was drawn against an original commitment of $500 million.

The loan proceeds will be used for general corporate purposes and are expected to provide an additional source of liquidity in advance of the October settlement of the 7% GBP retail bond. EnQuest expects to satisfy all conditions and complete the loan within 30 days from signing. EnQuest was advised by Rothschild & Co and Ashurst.

Within the loan, Double A Limited, a company beneficially owned by the extended family of Amjad Bseisu, has agreed to lend $9 million on the same terms and conditions as all other lending parties. This is considered a smaller related party transaction under Listing Rule 11.1.10. EnQuest has obtained written confirmation from a sponsor that, given the aforementioned terms and conditions, Double A's participation in the loan is fair and reasonable as far as EnQuest's shareholders are concerned.

Commenting on this agreement, EnQuest's Chief Financial officer, Salman Malik, said:

"We continue to de-lever our balance sheet and optimise our capital structure in response to the impact of the Energy Profits Levy on available borrowing capacity under the RBL. We are pleased to have secured this source of financing to extend our debt maturities and build optionality within the balance sheet as we look to support accretive growth opportunities. We thank our lending syndicate for their enhanced support."

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August 25, 2023 09:09 ET (13:09 GMT)