Harvest refinances C$1 billion with new term loan, amended facility

By Tali Rackner

Norfolk, Va., Feb. 28 – Harvest Operations Corp. refinanced C$1 billion through the closing of a new term loan and the restructuring of an existing credit facility, according to a Feb. 24 press release.

On Feb. 17, the company entered into an agreement with a Korea-based bank that allowed it to borrow C$500 million through a three-year fixed-rate term loan. The term loan was drawn down on Feb. 24 and proceeds were used to repay credit facility borrowings.

Also on Feb. 24, Harvest entered into a new C$500 million three-year revolving credit facility.

The new term loan and amended credit facility replace the company’s C$1 billion revolving credit facility that was to mature in April 2017.

Both the term loan and new syndicated revolving credit facility are guaranteed by Korea National Oil Corp.

The new syndicated revolver is secured by a first floating charge over all of the assets of Harvest and its material subsidiaries and contains no financial covenants, the release said.

Harvest Operations, based in Calgary, Alta., is an oil and natural gas exploration and production company that also has an oil sands project under construction. It is a subsidiary of Korea National Oil Corp., a state-owned oil and gas company.

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