Serica Energy plc announced the signing of a new USD 525 million secured Reserves Based Lending (RBL) facility. The new RBL facility replaces Serica's existing RBL and Junior facilities. The existing RBL facility has USD 271 million drawn and will be fully repaid upon completion of the new RBL facility, which is expected to occur in January 2024.

The Junior facility remains undrawn. Facility Highlights: Significantly increased liquidity to support future acquisitions and investments. Option of potentially doubling RBL facility to over USD 1 billion through an accordion feature.

Debt maturity deferred by more than two years to end 2029. Establishes new relationships with a syndicate of leading international banks. Simplified financing arrangement with single facility.

Description of new RBL facility: USD 525 million revolving credit facility available in multiple currencies. Serica's existing RBL facility is in amortisation phase with capacity falling to USD 330 million at the end of 2023. Maturity date of 31 December 2029 with amortisation commencing on 31 December 2026.

Serica's existing RBL facility matures on 30 June 2027. Additional uncommitted accordion option of a further USD 525 million increasing the potential total facility to USD 1,050 million. $100 million sub limit which can be utilised to issue Letters of Credit without the need for cash security.

The Borrowing Base Assets comprise all of Serica's interests in producing fields except the Rhum field. Available amount under the facility is subject to semi-annual redeterminations. If 50% or more of the amount available is drawn, the minimum commodities hedging requirement is equal to 50% of forecast production from the Borrowing Base Assets in year one and 30% in year two.

The hedging requirement is halved if less than 50% of the amount available is drawn. Initial interest rate for loan drawings of SOFR plus a margin of 3.90% per annum. The margin under the existing RBL facility is 3.10% per annum.