Harneys acted as British Virgin Islands and Cayman Islands counsel to the lenders on Valeura Energy Inc’s first debt facility.
The move followed the completion of a senior secured reducing revolving credit facility worth up to US$325 million on 22 July.
The facility launched with an initial committed amount of $75m and established Valeura Energy’s first scalable funding platform backed by a syndicate of international lenders.
According to Valeura Energy in a press release on 30 July, the financing is intended to provide committed funding capacity and flexibility to support future growth initiatives and acquisition opportunities.
The lender group comprised a syndicate of international financial institutions alongside a global commodities trading house.
Greenberg Traurig Singapore LLP acted as transaction counsel for the lenders, while Herbert Smith Freehills Kramer LLP advised Valeura Energy.
Harneys’ work covered the offshore security package, security interests over BVI and Cayman holding entities, legal opinions and the enforceability of security interests supporting the syndicated financing.
The Harneys team was led by Singapore managing partner Lishi Fong, with support from senior associate Jonathan Lim, associate Nicole Teng and paralegal Rachel Lim, all based in the firm’s Singapore office.
Fong said: “We were pleased to advise the lender group on Valeura Energy’s inaugural financing.
“As cross-border financings continue to evolve in complexity, well-structured offshore security packages remain an important component of transactions involving international holding structures.
“We are delighted to have supported the lenders in establishing a robust BVI and Cayman Islands security framework that provides flexibility for Valeura Energy’s future growth and acquisition strategy.”
A reducing revolving credit facility allows a borrower to draw and repay funds up to a set limit, while the overall borrowing capacity reduces over time under agreed terms.
