Santos announces refinancing of syndicated debt facility
Australian oil and gas company Santos has finalised documentation to refinance its syndicated bank loan facility, maturing in 2025, the company announced on September 23. The facility, previously set at $250mn, has been increased to $850mn.
The new facility is a fully-revolving loan with a maturity date of January 2030, replacing the previous loan which was due in August 2025. The loan carries a floating interest rate linked to the Secured Overnight Funding Rate (SOFR), with a margin based on Santos' external credit rating, currently set at 1.55% per annum for the 5.5-year term.
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Santos CEO Kevin Gallagher stated that the new syndicated facilities align with the company’s strategy of securing flexible and competitively priced funding while enhancing liquidity and strengthening the balance sheet. He noted, "Increasing the facility on these terms is an excellent result for Santos and continues to demonstrate strong support from our bank lenders." He added that the fully-revolving nature of the facility provides significant flexibility and reduces borrowing costs when not utilised.