Bank of China contributes to a $1.475 billion AUD syndicated loan to Beach Energy for the acquisition of Lattice Energy

Project narrative

On September 28, 2017, South Australia-based oil and gas developer, exploration, and production company Beach Energy Limited entered into a binding agreement to acquire Lattice Energy Limited, the conventional upstream oil and gas business of Origin Energy Limited, from Origin Energy for a consideration of $1.585 billion AUD ($1.2 billion USD). Then, on January 31, 2018, financial close was reached on a deal in which a syndicate of 15 banks — including the Bank of China (BOC) — entered into a $1.475 billion AUD senior syndicated loan agreement with Beach Energy to support the acquisition of Lattice Energy. In addition to BOC, the following lenders are known to have contributed to the loan syndicate: Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), Credit Suisse AG, BNP Paribas S.A., the Bank of Tokyo-Mitsubishi, UFJ. (BTMU), DnB ASA, HSBC Bank, ING Bank N.V., Intesa Sanpaolo S.P.A., Metrics Credit Partners, Mizuho Bank, and National Australia Bank Limited (NAB). ANZ served as underwriter. The acquisition was completed on January 31, 2018. Beach Energy paid a completion payment of $1.498 billion AUD that day, consisting of the $1.585 billion AUD purchase price minus adjustments of $87 million AUD. Beach reportedly used $503 million AUD of existing cash reserves and drew down $995 million AUD from its debt facilities. Lattice Energy's assets as of September 2017 consisted of the following: a 67% interest in the Otway Gas Project and interests in various adjacent exploration permits, a 100% interest in the Halladale, Speculant and Black Watch gas fields, a 42.5% interest in the Bass Gas Project and interests in discoveries located in nearby exploration permits, various interests in the Cooper Basin, including in the Cooper Basin Joint Venture operated by Santos and in the Cooper Basin Origin Senex exploration joint venture operated by Senex, various interests in the Perth Basin, including a 50% interest in the Waitsia Gas Project and a 67% interest in the Beharra Springs Project, various interests in exploration permits in the Bonaparte Basin, including a 5% in the Petrel field, and interests in New Zealand, including a 50% interest in the Kupe Gas Project and an exploration permit located in the Canterbury Basin.