INTEROIL Corporation has arranged a new loan facility worth US$400 million with the Australia and New Zealand Banking Group (ANZ) as sole lead arranger and book runner.

The senior secured capital expenditure facility will refinance and replace InterOil’s existing US$300 million secured capital expenditure facility.

It is secured at an annual interest rate of the London Interbank offered rate plus 6%, with maturity extended from the end of 2016 to the end of 2017.

Other supporting lenders include Westpac PNG Limited, Bank of South Pacific Limited, Intesa Sanpaolo SPA, Credit Suisse AG, Société Générale, Morgan Stanley and UBS AG.

InterOil chief financial officer Donald Spector said the company was taking proactive steps to increase its financial flexibility.

“The new, increased and extended credit facility underscores the lenders’ confidence in our Papua New Guinea assets and in Papua LNG,” he said.

The news came after shareholder Phil Mulacek launched legal action against the company as part of its bid to reduce the numbers on the company board to six.

Mr Mulacek has sought to call a special meeting of shareholders on 10 June, ahead of the company’s annual and special general meeting (AGM) already scheduled for 14 June.

He also launched court action in June seeking that the six directors be elected individually at the 14 June meeting.

“InterOil views the commencement of legal proceedings in order to call for a special meeting of shareholders separately from the AGM as an unnecessary use of corporate resources and shareholder time, especially as the special resolutions were already being considered as matters to be voted on.”

“We are disappointed that Mr Mulacek has chosen to initiate legal proceedings against the company on this basis,” the company said.