Providence Resources today announced it has secured a new $100 million financing facility with BNP Paribas.
The debt line is a senior secured reducing borrowing base facility with up to $65 million available immediately.
According to the company, the proceeds will be used to retire the existing Macquarie debt of $56 million with the balance available for working capital.
The facility has a term maturity of September 2014, and the $250 million Macquarie facility will now be cancelled.
Commenting, Tony O’Reilly, CEO of Providence Resources said: “We are delighted to have arranged this new facility with BNP Paribas who are leaders in resource financing. We look forward to working with them in the development of our portfolio.”
Davy said it saw the tie-up with a major resource lending bank as evidence of the group's expansion strategy, including the recent acquisition of a 40 per cent share in the Kinsale Head gas storage project, which the oil and gas exploration company said will be financed through existing resources and debt.
