Tethys Oil Signs Senior Revolving Reserve-Based Lending Facility to be used in part to redeem its SEK 400,000,000 Bond

Stockholm, 27 February 2014, – Tethys Oil AB (publ) (“Tethys”) (TETY:
Stockholm) signed today a four-year, up to MUSD 100, Senior Revolving
Reserve-Based Lending Facility (the “Facility”) with BNP Paribas (“BNPP”). BNPP
acts as Coordinating Mandated Lead Arranger, Bookrunner, Technical Bank and
Facility Agent. The Facility leverages Tethys Oil’s 30 per cent interest in the
Block 3&4 Production Sharing Agreement in the Sultanate of Oman.
As part of its current financial structure, Tethys has a MSEK 400 bond, with a
fixed interest rate of 9.50 per cent per year listed on NASDAQ OMX Stockholm.
In connection with the first drawdown of the Facility, Tethys will exercise its
option for early redemption of the bonds and redeem all outstanding bonds. The
early redemption price will be 104.5 per cent of the nominal amount of the
bonds plus accrued unpaid interest and the redemption is expected to occur in
the beginning of April 2014.
The initial commitment of the Facility is MUSD 50. The interest rate of the
Facility will be floating, and be in the range of LIBOR + 3.75 per cent to
LIBOR + 4.00 per cent per annum, depending on the level of utilization of the
Florent Simon, Managing Director, Structured Debt Oil & Gas at BNPP commented,
“This transaction with Tethys Oil is highly valuable to us, firstly because we
view it as the beginning of a long-term and fruitful relationship with Tethys
Oil but also because its shows the continued performance of BNPP Oil & Gas
franchise which aims at supporting Oil & Gas independent companies globally.
BNPP is thus very pleased to coordinate this financing, the first of its kind
in Oman.”
Magnus Nordin, Managing Director of Tethys Oil AB, commented: “We are very
happy to have reached this important stepping stone in our development, and we
look forward to a long and rewarding cooperation with BNPP. The bank financing
will allow us to optimize and reduce our financing costs, and it will increase
Tethys’ financial and operational flexibility. The revolving nature of the
Facility will allow us to draw funds from the Facility, when needed, both in
regards to Blocks 3&4 as well as other projects.”
For further information, please contact
Magnus Nordin, Managing Director, phone +46 70 576 6555; magnus@tethysoil.com
Morgan Sadarangani. CFO, phone +46 8 505 947 01. morgan@tethysoil.com
Tethys Oil AB (publ)
Tethys Oil is a Swedish energy company focused on exploration and production of
oil and natural gas. Tethys Oil’s core area is Oman, where the company is one
of the largest onshore oil and gas concession holders. Tethys Oil also has
exploration and production assets onshore France and Lithuania. The shares are
listed on NASDAQ OMX Stockholm (TETY) in Stockholm.
Website: www.tethysoil.com