International law firm CMS has advised MOL Plc. (“MOL”), an integrated international oil and gas company, headquartered in Budapest, on a EUR 615m revolving credit facility provided by a group of ten banks.
The Facility refinances the EUR 439m expired part of the EUR 1bn revolving credit facility which expired in June 2016. Due to favourable market conditions and a positive market response to the announced financing, MOL increased the amount of the Facility to EUR 615m.
The Facility was coordinated by BNP Paribas and Erste Group Bank AG, with Erste Group Bank AG acting as the Facility Agent.
MOL achieved highly competitive conditions on the Facility with the initial margin being 95 basis points. The tenor of the Facility is 5 years with two one-year extension options and incorporates an accordion mechanism allowing MOL to increase the Facility by an additional EUR 300 million during the life of the Facility. The new facility further enhances the financial profile and liquidity position of MOL Group.
The CMS team advising MOL on the transaction was led by International Banking and Finance partner Mark Segall and further included partner Erika Papp and senior associate Eszter Török from CMS Budapest.
MOL is a longstanding client of the firm, and CMS regularly advises the company across Central and Eastern Europe.