MEREN ANNOUNCES SUCCESSFUL DEBT REFINANCING

Executive Summary

• Meren Energy’s subsidiary, Meren Coöperatief U.A., refinanced its $600 million reserve‑based lending (RBL) facility with an optional accordion feature up to $1 billion.
• The new terms reduce the loan‑life average margin by 0.125 % and extend the tenor to six years, providing lower borrowing costs and greater financial flexibility.
• Upon closing, available RBL capacity will increase from $468 million to $574 million, with outstanding principal rising to approximately $370 million.

Key Details

• Facility Size: Total commitment of US$600 million; accordion feature allows expansion up to US$1 billion.
• Interest Rate: SOFR + 4.00% for years 1‑3, increasing to SOFR + 4.25% for years 4‑6 (0.125% margin reduction vs. prior facility).
• Tenor: 6‑year term from closing of the refinancing.
• Use of Proceeds: Full repayment of existing RBL facility and coverage of all related transaction costs.
• Operational Flexibility: Revolving structure permits draws/repayments up to the lesser of total commitments or borrowing base amount.
• Capacity Impact:
• Pre‑refinancing (12/31/2025): $468 million available capacity, $330 million outstanding principal.
• Post‑refinancing: Expected $574 million available capacity, $370 million outstanding principal.
• Closing Timeline: Conditions precedent satisfied; facility expected to close imminently.

Notable Quotes

“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.” – Aldo Perracini, Chief Financial Officer, Meren Energy Inc.