Oz Santos Finalises US$750mn Loan Facility

Australian oil and gas explorer Santos has finalised a new US$750mn syndicated bank loan facility, it said on November 5 in a statement.

“Proceeds from the new facility will be used to refinance the existing US$750mn debt facility established for the acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets, which was completed in May 2020,” the company said. The five and a quarter-year facility will mature in January 2026.

Santos completed the acquisition of ConocoPhillips' northern Australia and Timor-Leste assets for a reduced purchase price of US$1.265bn plus an increased contingent payment of US$200mn subject to a final investment decision on Barossa. The purchase price at completion was fully-funded from available cash together with US$750mn of new two-year acquisition debt.

Santos CEO Kevin Gallagher said the new debt facility was consistent with the company’s strategy of securing competitively priced long-term funding.

“This is an excellent result for Santos, showing strong support from bank lenders and demonstrating our balance sheet is set up to support our growth strategy,” Gallagher said. “With this new facility in place, we now have no material debt maturities until 2024.”