Petrofac Ltd. (PFC), a U.K. oil and gas company, is raising about $1.5 billion from a five-year loan to fund operations, helped by Barclays Plc (BARC) and Standard Chartered Plc (STAN), according to two people familiar with the situation.
About 10 other banks are expected to participate in the revolving credit facility that pays interest of 150 basis points to 200 basis points above the benchmark rate, the people said, asking not to be identified because the information is private. The loan was increased from an original $750 million to $1 billion on demand from the banks, one of the people said.
Petrofac, which operates in 29 countries, said Aug. 14 it won a $100 million contract for work on offshore oil facilities in southern Iraq. The company had profit before some items of $323.7 million in the six months through June, compared with $246 million a year earlier. Total debt at the London-based company is $67 million, according to data compiled by Bloomberg, while it has project commitments for about $9.1 billion.
Interest on the facility will vary with the amount of the loan drawn and the company will also pay a commitment fee of a third of the interest rate, the person said. The banks are currently working on the loan documentation.
Spokesmen for Petrofac in London and Barclays in Dubai, who asked not to be identified because of company policy, declined to comment. Ramy Lawand, a spokesman for Standard Chartered in Dubai, also declined to comment.
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