Hungarian oil and gas company MOL on Thursday signed a €450 million forward-start revolving-facility that will be available to the company beginning on October 1, 2010, the final maturity date of a €2.1 billion credit facility, MOL announced.
The tenor of the forward-start loan is 18 months, which can be extended by six months at MOL's request. As part of the transaction, €600 million will be cancelled from the currently €1.6 billion undrawn commitment under the €2.1 billion facility agreement.
The transaction was coordinated by Bank of Tokyo-Mitsubishi UFJ, Ltd., ING Bank NV and KBC Bank NV.
MOL signed the agreement for the €2.1 billion facility with a banking syndicate, lead-managed by Societe Generale and KBC Bank's Dublin branch, on October 3, 2007. 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.
MOL announced at the time that proceeds from the facility would be used for general corporate purposes, including acquisitions. (MTI – Econews)