Meren Energy announces that its subsidiary, Meren Coöperatief U.A. (“Meren Coop”), has signed the refinancing of its reserves base lending (“RBL”) facility, significantly increasing its debt capacity and extending its debt maturity profile.

Meren’s Chief Financial Officer, Aldo Perracini commented: 
“We are grateful for the continuing and strong support of our banking group. The reduction in borrowing costs and greater than two times level of oversubscription underscore the quality of our production assets and our demonstrated track record of disciplined financial delivery”.

The refinanced RBL facility will have a total commitment of US$600 million with an accordion feature permitting an increase in the total facility size up to US$1 billion. Proceeds from the amended facility will be used to refinance in full the existing facility and to cover all related costs. The amended facility will accrue interest at the applicable SOFR rate plus a margin of 4.00% during years 1 to 3, increasing to 4.25% during years 4 to 6.  This represents a loan-life average margin reduction of 0.125% compared to the existing facility terms. The amended facility has a 6-year tenor from the closing of the refinancing.

As a revolving facility, the RBL provides Meren with significant operational flexibility to draw and repay the outstanding principal up to the lesser of the total facility commitments or the borrowing base amount.  This structure allows Meren to minimize borrowing costs and optimize its capital structure as it executes its business plan. In addition, the accordion feature provides further flexibility to increase commitments as needed to support Meren’s future growth initiatives.

As at December 31, 2025, Meren had available RBL capacity of US$468 million with outstanding principal of US$330 million under its existing facility terms. On closing of the amended facility, Meren’s expected RBL capacity will increase to $574m with outstanding principal of $370m.

Conditions precedents have been satisfied and the Company expects the facility to close imminently.