Strike Energy (ASX:STX) received AU$162 million in initial credit approval from Macquarie Bank, a Macquarie Group (ASX:MQG) unit, marking the first tranche of a AU$217 million financing package, according to a Thursday filing with the Australian bourse.
The financing consists of a AU$113 million term debt facility to refinance existing debt, fund the South Erregulla Power Project, in Western Australia, and provide working capital, the filing said.
A further AU$49 million will be used for the procurement of gas engines for the project, the filing added.
Additional AU$15 million funding for procurement at the South Erregulla project and AU$40 million for the development of the West Erregulla gas field will be subject to future credit approval as needed, the company said.
Strike and Macquarie are currently finalizing the financing documentation, with the existing security package expanded to include assets tied to the new funding, the company said.
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