The Oil Search Ltd (ASX: OSH) share price is slipping during late afternoon trade after a market release earlier today.
At the time of writing, the energy giant's shares are trading 2.40% lower to $3.66 apiece. This means that over the past month, its shares have dropped close to 8% following declining oil prices due to Hurricane Ida in the United States.
What did Oil Search announce?
According to today's release, Oil Search advised it has signed documentation for a new US$565 million non-amortising revolving credit facility.
The company refinanced through a banking group made up of banks from Papua New Guinea, Australia, Asia, and the United States. The credit facility has an expiry date of 31 December 2026.
This will replace the previous $600 million line of credit that was set to expire in June 2022.
Oil Search vice president of treasury Chelsea McGregor commented:
We are pleased to see support from both existing and new relationship banks, which signals their recognition that Papua New Guinea continues to be an attractive country to invest in.
The new facility extends the Group's weighted average debt maturity profile, maintains liquidity above US$1 billion and is a key component of Oil Search's capital management strategy for the next five years.
Recently, Oil Search provided an update in regards to the proposed merger with Santos Ltd (ASX: STO). The company extended the due diligence period for another week until 13 September.
The offer put forward consists of Oil Search shareholders receiving 0.6275 new Santos shares for each Oil Search share held.
If the deal goes ahead, Santos and Oil Search will become the largest oil and gas company on the ASX.
Oil Search share price summary
Since this time last year, Oil Search shares have gained more than 20%, but are relatively flat year-to-date. The company's share price has moved sideways for most of 2021, amid uncertainty in the global economic recovery.
Based on today's price, Oil Search commands a market capitalisation of roughly $7.6 billion, and has 2 billion shares outstanding.
