Noble Energy enters into new $1.4B term loan agreement

Noble Energy, a U. S.-based independent oil and gas company, has announced a series of transactions, consisting of a new term loan and cash tender offers for certain outstanding notes, which, according to the company, collectively enhance its financial flexibility.

Noble Energy has entered into a new three-year term loan agreement with seven lending institutions for a principal amount of up to $1.4 billion.

Provisions of the term loan agreement, including pricing and covenants, are consistent with those contained in the company’s existing $4.0 billion revolving credit facility. Borrowings under the term loan agreement may be pre-paid in full or in part at any time prior to its maturity without premium, the company said on Wednesday.

In connection with the term loan commitments, Noble Energy has simultaneously launched cash tender offers for the following series of its notes: 5.875% Senior Notes due 2024, 5.875% Senior Notes due 2022 and 5.625% Senior Notes due 2021, all of which were originally assumed as part of the Rosetta Resources Inc. merger. The maximum aggregate purchase price (exclusive of accrued interest) of Notes to be purchased will be limited to approximately $1.4 billion. The borrowings under the term loan facility will be used solely to fund the tender offers.

Kenneth M. Fisher, the Company’s Executive Vice President and CFO, commented, “Today’s announcement represents a significant additional synergy from the Rosetta merger. These transactions create significant value for Noble Energy, improving profitability through annual interest savings of up to $50 million and substantially enhancing our deleveraging flexibility. We ended 2015 with $5 billion in liquidity and are committed to continuing a disciplined capital program.”

 

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