Australian energy company Strike Energy has secured an initial $162m in funding from Macquarie Bank as part of a $217m financing package to support the company’s gas and power generation developments in the Perth Basin.
The initial commitment will facilitate the execution phase of the South Erregulla gas power plant project in Western Australia.
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The $162m financing package comprises a $113m term debt facility and a $49m asset financing facility.
The term debt will refinance existing debt, capitalise interest, fund the South Erregulla power project and provide general working capital.
The asset financing will procure reciprocating gas engines for the power project.
The $217m funding package includes a total debt financing facility of $153m and a total asset finance facility of $64m.
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By GlobalDataThe total debt facility is structured into three tranches: tranche A with $73m committed, tranche B with $40m committed and tranche C with $40m uncommitted.
The total asset finance facility of the package amounts to $64m and is divided into a $49m committed tranche A and a $15m uncommitted tranche B.
The remainder of the $217m funding package, still subject to Macquarie’s credit approval, includes a $40m term debt facility for the West Erregulla gas field development and a $15m asset financing for procurement at South Erregulla.
These funds will be accessed as needed, with credit approval to be sought at the appropriate time.
Strike Energy and Macquarie are finalising and executing the financing documentation.
In November 2024, Strike Energy made an unconditional final investment decision to proceed with the South Erregulla gas power plant in Western Australia.
With an estimated cost of $137m, the project has entered the execution phase.
The facility will supply 85MW of firming power to the South West interconnected system via the existing 132kV line between Geraldton and Three Springs.
