Det norskes long-term interest-bearing debt consists of a USD 3.0 billion Reserve Based Lending (“RBL”) facility and a NOK 1.9 billion bond (DETNOR02).
The RBL is a seven year facility with a bank consortium consisting of 17 banks. The RBL facility is secured by a security package consisting of a pledge over the Company’s interests in development and production licenses in Norway. The loan carries an interest of LIBOR plus a margin of 2.75 percent per annum, plus a utilisation fee of 0.25 or 0.50 percent, depending on the amount drawn under the facility.
The available amount under the USD 3.0 billion RBL facility will be determined twice a year from the value of the Company’s borrowing base assets based on certain assumptions. Subject to certain conditions the RBL may be expanded to USD 4.0 billion.
Financial covenants under the RBL facility include, inter alia, a leverage ratio covenant (Net debt / EBITDAX) and an interest cover ratio (EBITDA / Interest expense) as well as short and long-term liquidity tests.
The DETNOR02 NOK 1.9 billion unsecured bond loan (ISIN: NO 001 068 4145) was issued in July 2013 and matures in 2020. The bond carries a coupon of 3 months NIBOR + 5.00 percent, payable in quarterly instalments. The bond is listed on the Oslo Børs with ticker “DETNOR02”.
Financial covenants for the bond include, inter alia, an adjusted equity ratio (Book equity divided by total assets less goodwill) of minimum 25 percent and a minimum cash position of NOK 250 million.