ICBC contributes to debt restructuring — via a one-year maturity extension — of a $20 million USD of a $95 million USD syndicated loan to Horizon Oil Limited for debt repayment and reserves purposes (Linked to Record ID#93129)

Project narrative

On November 5, 2018, a syndicate of three banks — the Industrial and Commercial Bank of China (ICBC), Australia and New Zealand Banking Group Limited (ANZ), and Westpac Banking Corporation — signed a $95 million USD syndicated revolving cash advance senior debt facility with Horizon Oil International Limited — a New Zealand-incorporated wholly-owned subsidiary of Horizon Oil Limited, an Australia-based company engaging in oil and gas exploration, development, and production in China and New Zealand — and Horizon Oil (Beibu) Limited — a Singapore-incorporated wholly-owned subsidiary of Horizon Oil Limited — for debt repayment and reserves purposes. The senior debt facility, structured as a reserves base lending facility, carried a maturity date of July 2022, and an interest rate of LIBOR plus a 2.75% margin. This loan was secured by (i.e. collateralized against) Horizon's oil producing assets via a floating charge over the assets of Horizon Oil International Limited and Horizon Oil (Beibu) Limited and other Horizon Oil Limited subsidiaries and a share mortgage of the shares of Horizon Oil International and Horizon Oil (Beibu) as charged by Horizon Oil Limited in favor of the security trustee, ANZ Fiduciary Services Pty Limited. Horizon Oil Limited, Horizon Oil International, and Horizon Oil (Beibu) also issued guarantees for the loan facility to the lenders. Horizon Oil's gas and condensate interests in Papua New Guinea were not subject to charges in favor of the lenders. The proceeds of this loan were to be used to repay Horizon's $20 million USD subordinated debt and retire the residual balance of $76.2 million USD of its existing senior debt facility with ANZ and Westpac which was scheduled to mature in May 2019. The deal was finalized and executed on November 15, 2018. Record ID#93129 captures the original loan. As of June 30, 2020, $25.43 million USD had drawn down under this facility. Then, on July 29, 2022, Horizon Oil Limited announced that ICBC, ANZ, and Westpac had approved a 12-month extension of its senior debt facility with a revised facility limit of $20 million USD that was executed on July 28, 2022 and financially closed on July 29, 2022. The extended facility had a new final maturity date of July 31, 2023 with the same interest rate of a LIBOR equivalent plus a 2.75% margin. Record ID#93131 captures the extension. As of June 30, 2023, the total drawn debt under the extended facility was $7.9 million USD. On July 31, 2023, the loan was repaid in full.