EnQuest $750m debt deal funds North Sea buy

Oil and gas firm EnQuest announced on Friday it signed a new debt facility for $750 million to enable a refinancing and fund the acquisition of assets in the Golden Eagle development in the UK North Sea.

In February, EnQuest agreed to buy Suncor’s 26.69% equity interest in the Golden Eagle development in the UK North Sea for an initial consideration of $325 million.

“EnQuest PLC, an independent oil and gas production and development company listed on the London and Stockholm stock exchanges, is pleased to announce it has signed a new senior secured borrowing base debt facility of approximately $600 million and an additional amount of $150 million for letters of credit for up to seven years,” said EnQuest.

“The new facility will enable the group to simplify its existing capital structure and finance the acquisition of a 26.69% interest in the Golden Eagle assets …”

EnQuest chief financial officer Jonathan Swinney said: “I am delighted to have agreed this new facility.

“It enables the refinancing and simplification of our existing capital structure and the acquisition of the Golden Eagle assets which will add material value, production and reserves to EnQuest.

“I would like to thank our lead banks, BNP Paribas and DNB, together with all of the lenders, for their support and I look forward to working with them.”