Melrose upsizes loan to $440 million, gets new $70 million subordinated facility

By Sara Rosenberg

New York, June 20 - Melrose Resources plc increased its credit facility to $440 million from $350 million and closed on a new $70 million subordinated secured facility, according to a news release.

Bank of Scotland acted as the lead arranger on the deal, with BNP Paribas, Societe Generale and the IFC as senior lead arrangers.

Pricing on the loans is approximately Libor plus 320 basis points.

Both facilities are due at the end of 2014.

The loans amortize in installments from April 2012.

In addition, the company said that it plans to further increase the senior facility before the end of the year.

"We are very pleased to have put these new facilities in place at a time of considerable uncertainty in the debt markets," said David Thomas, chief executive, in the release. "The new facilities provide us with substantial borrowing headroom and we are well placed to pursue our highly active exploration and development programme."

Melrose is an Edinburgh-based oil and gas exploration, development and production company.

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