European Investor
16 Jan 2025, 17:25
On January 15, 2025, APA Corporation terminated its previous USD and GBP credit facilities, replacing them with two new syndicated five-year revolving credit agreements. The USD facility provides $2 billion in aggregate commitments with an option to increase up to $2.5 billion, while the GBP facility offers £1.5 billion in commitments. Both facilities are unsecured and cater to general corporate purposes, with borrowing terms tied to adjusted interest rates, including SOFR and the Sterling Overnight Index Average, plus varying margins.
The agreements include customary covenants, such as maintaining a debt-to-capital ratio under 65%, restrictions on certain liens, and limitations on asset dispositions. APA may extend the maturity date twice by one year, subject to lender consent. Apache Corporation, an APA subsidiary, guaranteed the obligations until certain debt thresholds are met.
As of the agreement date, there were no outstanding borrowings under the previous USD facility, while £253 million in letters of credit from the prior GBP facility transitioned to the new GBP agreement. These facilities align with APA's financial strategy and offer flexibility for its operations.
The agreements include customary covenants, such as maintaining a debt-to-capital ratio under 65%, restrictions on certain liens, and limitations on asset dispositions. APA may extend the maturity date twice by one year, subject to lender consent. Apache Corporation, an APA subsidiary, guaranteed the obligations until certain debt thresholds are met.
As of the agreement date, there were no outstanding borrowings under the previous USD facility, while £253 million in letters of credit from the prior GBP facility transitioned to the new GBP agreement. These facilities align with APA's financial strategy and offer flexibility for its operations.
