SapuraKencana Successfully Signs RM16.5 Billion Refinancing Club Deal with 13 Banks
Date: 20.03.2014.

Kuala Lumpur, 20 March 2014

SapuraKencana Petroleum Berhad (SapuraKencana) has successfully concluded and signed a RM16.5 billion (US$5 billion) refinancing club deal with 13 local, regional and international banks.

The refinancing program was put in place to replace and streamline facilities that were inherited following the merger of SapuraCrest Petroleum and Kencana Petroleum in 2012.

It was also undertaken for the financing of the Group's two most recent acquisitions ­ the Seadrill tender-rig business which has since been renamed SapuraKencana Drilling and the purchase of the entire equity interest in Newfield Malaysia Holding Inc.

"The completion of the refinancing program is indeed a strategic milestone for the Group post the 2012 merger. It is an endorsement of the sustainability of our business as a fully integrated upstream company and demonstrates confidence in our business direction and growth prospects," said SapuraKencana President and Group CEO, Tan Sri Dato' Seri Shahril Shamsuddin.

Approximately 80 percent or RM13 billion of the refinancing package is dedicated for assets that are fully contracted out to International Oil Companies and National Oil Companies.

The interest from lending institutions was overwhelming and exceeded the RM16.5 billion that was required by the Group.

“Approximately 80 percent of the Group¹s projected EBITDA for the next 3 years is already secured by contracts. We believe the ability to demonstrate this strong and visible earnings for the Group was one of the main contributors for the overwhelming interest shown by the banks to support our company." said Tan Sri Dato’ Seri Shahril Shamsuddin.

The club deal constitutes a senior multicurrency term and revolving facilities with short and long-term tenures of up to 7 years.

About 70 percent of the borrowings are in US dollars which provides as a natural hedge against the kind of businesses that SKPB engages in. This was made possible through the Treasury Management Company (TMC) status that has been granted to SapuraKencana by Bank Negara which provides for incentives which includes exemption from withholding tax on interest payments/profits on borrowings, exemption from stamp duty on all financing agreements as well as flexibilities in Foreign Exchange Administration (FEA).

Maybank Investment Bank and CIMB Investment Bank were the Coordinating Banks while Maybank Investment Bank acted as the Agent and the Security Agent.

“We would like to thank all banks involved in this process for partnering SapuraKencana in our transformational journey. Their support and participation in this multicurrency facility is pivotal to the execution of our strategies for future growth,” said Tan Sri Dato’ Seri Shahril Shamsuddin.