Fortune Oil replaces April 2010 facility with new $180 million loan

By Angela McDaniels

Tacoma, Wash., April 4 - Fortune Oil plc said Fortune Oil PRC Holdings Ltd., its principal intermediate holding company in Hong Kong, signed a $180 million three-year loan agreement.

The interest rate is Libor plus 260 basis points, according to a company news release.

Morgan Stanley Asia Ltd. is the global coordinator and facility agent bank. A total of 13 Asia-Pacific regional banks participated in the oversubscribed transaction.

The facility is guaranteed by Fortune Oil and secured by share charges over its various Hong Kong subsidiaries.

The proceeds will be used to repay the $80 million facility arranged by Standard Chartered Bank (Hong Kong) in April 2010, to acquire assets in China including natural gas, coal bed methane and resources and for general working capital requirements.

The company said it returned to the bank financing market so quickly in order to maximize its borrowing capacity to lock in low-cost financing at current levels before central banks across Asia-Pacific, particularly China, begin to aggressively tighten liquidity.

Fortune Oil is an oil and gas company based in London with operational headquarters in Hong Kong.

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