Central Petroleum (ASX:CTP) has successfully restructured its loan facility with Macquarie Bank Limited. The new agreement extends the term of the loan, originally used for asset acquisitions, to December 31, 2029. The restructuring ensures full repayment of the $22.3 million loan by the new term end date, mitigating refinancing risks in a challenging market.
Central Petroleum's refinancing of its loan facility with Macquarie Bank marks a strategic move to secure financial stability and flexibility. The extended five-year term allows the company to focus on increasing production at its Mereenie and Palm Valley assets, pending JV approvals. The loan's flexibility, with no early repayment penalties, supports Central Petroleum's broader goals of expanding its domestic energy supply role and exploring new ventures in helium and hydrogen. The company anticipates finalizing the amended loan documents by November 30, 2024, ensuring alignment with its strategic objectives in the Northern Territory gas sector.
The visibility of full debt repayment is a significant achievement, and the strategic location of our assets continues to offer advantages in supplying the Northern Territory gas market. The restructured loan provides us with flexibility for new investments, potential shareholder returns, and early debt retirement.