Bank of China contributes to a $750 million USD syndicated loan to refinance Santos' acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets (Linked to Record ID#96307 and #96308)

Project narrative

On November 5, 2020, it was announced that a syndicate of 20 banks — including the Bank of China (BOC), the Bank of Communications (BoComm), and China Everbright Bank — had entered into a $750 million USD unsecured syndicated bank loan facility with Santos Finance Limited — a wholly owned subsidiary of Australian oil and gas exploration and production company Santos Limited — to refinance debt incurred for Santos' acquisition of ConocoPhillips’ northern Australian and Timor-Leste assets. This dual-tranche was split between a $550 million USD term loan tranche known as Tranche A and a $200 million USD revolving credit tranche known as Tranche B. This loan carried a maturity period of five and a quarter years (5.25 years), a maturity date of January 30, 2026, and an interest rate of LIBOR plus a margin of 200 basis points (bps). Santos Limited provided a guarantee in support of this loan. In October 2019, Santos had entered into a sale and purchase agreement for up to $1.465 billion USD to acquire ConocoPhillips's northern Australian and Timor-Leste assets, including a 37.5% interest in the Barossa gas field project, which, if implemented, would supply gas via a 260-kilometer pipelien connecting to the existing Bayu-Undan gas line to Drawin, , a 37.5% interest in the Caldita field, a 56.9% interest in the 3.7 million tons per annum Darwin LNG plant, a 56.9% interest in the Bayu-Undan Field in the Timor Sea and the Bayu-Undan to Darwin Gas Export Pipeline, a 40% interest in Browse basin (Western Australia) permits WA-315-P and WA-398-P in the Poseidon gas field, and a 50% interest in the Athena field, developments with a production of around 50,000 barrels of oil equivalent (boe) per day for the first half of 2019 and proven reserves of 39 million boe as of the end of 2018. Santos already owned 11.5%, 11.5%, and 25% respective interests in Darwin LNG, Bayu-Undan, and Barossa. The acquisition had been completed on May 28, 2020 for a purchase price of $1.265 billion USD plus a contingent consideration of $200 million USD payable on the Barossa project achieving final investment decision. The acquisition was supported by a two-year $750 million USD acquisition loan. The proceeds of the November 2020 $750 million USD were used to refinance this existing debt. Record ID#96306 captures BOC's contribution. Record ID#96307 captures BoComm's contribution. Record ID#96308 captures China Everbright Bank's contribution. In addition to the three Chinese banks, the following lenders contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), MUFG Bank, Ltd., DBS Bank, DNB, Intesa Sanpaolo S.p.A., ING, National Australia Bank Limited (NAB), State Bank of India (SBI), Sumitomo Mitsui Banking Corporation (SMBC), Credit Suisse AG, Goldman Sachs Mortgage Co., United Overseas Bank Limited (UOB), Westpac Banking Corporation, First Commercial Bank, and Royal Bank of Canada (RBC). ANZ, CBA, and MUFG served as mandated lead arrangers and bookrunners; the other 17 lenders joined in syndication and loan was three times oversubscribed.