New RBL Per the PR:
At end of first quarter 2023 Prime had an outstanding reserves-based lending ("RBL") facility and a pre-export finance facility with an aggregate outstanding debt amount of $720.3 million ($360.2 million net to AOC). Prime will now complete the refinancing of both these facilities through the closing of a new RBL facility. This new facility is for a principal amount of $1.0 billion ($0.5 billion net to AOC) with a 6-year tenor. Prime also reported a cash position of $396.9 million ($198.5 millionnet to AOC) at end of first quarter 2023.
Do they need $1billion (500 M net) over 6 years?
interest rate has to be wild at the moment, I believe it's already LIBOR + X
Why not just refi the current outstanding if you can get a better deal than current? The duration aspect makes sense but not the amount, Prime could be sold at some point. No sense in levering up again