UBS loan not due: Sonk

The National,Wednesday June 15th, 2016

KUMUL Petroleum Holdings Ltd (KPHL) managing director Wapu Sonk has denied that the A$1.239 billion (K3 billion) UBS loan was not due on Monday this week as widely speculated.
“UBS loan was never due yesterday (Monday),” Sonk told The National yesterday.
“I don’t know where this came from.
“It was due March 4.
“KPHL restructured the loan in February and it was rolled over to 2019.
“It’s with Kumul Petroleum now.”
But in February, the Government was seeking to refinance the loan, underpinning PNG’s 10 per cent stake in Oil Search.
The clock was then ticking for PNG, whose A$904 million collar loan initially arranged with UBS in February 2014, to mature at the end of February.
The A$1.239 billion loan comprises two components – a bridge loan of A$335 million with an interest rate of 5.5  per cent per annum  and a collar loan of A$904 million at an interest rate of 4.95 per cent.
Sonk said there was no need for the repayment of the UBS collar loan as it was already extended.
“It is scrutinised by the value of the Oil Search shares itself within a call-and-put structure, and KPHL only paid an interest for three years at 3 per cent and the collar maturity was extended to 2019.
“This UBS loan is on KPHL’s balance sheet and we have taken full carriage of the OSL shares since December 2014,” he said.
Treasury secretary Dairi Vele, meantime, said the task of loan repayment was now with KPHL.