Hungarian oil and gas company MOL has increased the amount of the revolving credit facility agreement signed on 10 September by €50 million to €500 million with the involvement of further banks, MOL said on Thursday. All other terms of the agreement remain unchanged, the company added.
The €450 million revolving credit facility signed on September 10 was intended to refinance a €525 million revolving credit facility expiring on October 2.
A Forward Start facility, concluded in November 2009 with a tenor of 18+6 months for refinancing purposes will be cancelled as part of the transaction.
The new facility has more favorable conditions compared to those of the Forward Start credit facility due to the stabilizing commercial banking environment and MOL's improved credit rating, the company said.
The tenor of the facility is 3 years which can be extended by another 1 year.
The €525 million refinanced by the new facility is the remainder of a €2.1 billion facility MOL signed with a banking syndicate, lead-managed by Societe Generale and KBC Bank's Dublin branch, on October 3, 2007, earlier Econews information shows. The facility was a revolving multi-currency one, had a maturity of three years with bullet repayment, and carried an initial interest rate of EURIBOR plus 27.5 basis points which was subject to a margin grid based on the ratio of Net Debt to EBITDA.
The Forward Start revolving-facility signed in November 2009 was to a value €450 million and was timed to be available by the final maturity date of the above €2.1 billion credit line of which €600 million was cancelled as part of the transaction, coordinated by The Bank of Tokyo-Mitsubishi UFJ, Ltd., ING Bank N.V. and KBC Bank NV. MOL cancelled another €975 million of the 2007 credit facility in July this year. (MTI-Econews)