Malaysia-listed offshore services provider Bumi Armada has clinched a syndicated term-loan facility and a standby letter of credit facility for a maximum aggregate principal amount of USD755 million.
The loan facility was signed by its wholly owned subsidiary Armada Kraken Private Limited, incorporated in Singapore. The loan will be used to refinance an existing bridge loan obtained on 31 March 2014 to part-finance and reimburse all costs and expenses of floating production, storage, and offloading vessel (FPSO) Armada Kraken.
The syndicated term loan will help to fund the acquisition, conversion, refurbishment, mobilisation, transportation, hook-up and mooring, and installation of the vessel, together with all ancillary and related works.
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Previously, Armada Kraken had inked a bareboat charter agreement with UK oil and gas company Enquest in 2013 for deployment of the FPSO vessel at the Kraken Oilfield located in the North Sea.
“Bumi Armada will incur finance costs in respect of the facility. The bareboat charter of Armada Kraken, after taking into account these finance costs, is expected to contribute positively to the net assets and earnings of the group,” said the company in its filing to Bursa Malaysia.