Corral Petroleum Holdings AB (publ) Business Update ... - Preem

the 2008 Credit Facility with proceeds from the New Credit Facility. As part of a refinancing, the lenders under the 2008Credit Facility entered into a supplemental agreement to the 2008 Credit Agreement (the “Seventh SupplementalAgreement”) to defer excess cash payment (the “Excess Cash Payment”) under the 2008 Credit Facility until the earlier of (i)September 19, 2011 and (ii) the date of application to the English Court to convene the creditors meeting required for theScheme (the “Scheme Launch Date”). Pursuant to the terms of the Seventh Supplemental Agreement, the Excess CashPayment is permanently waived upon completion of an exchange offer and consent solicitation and entry into the New CreditFacility. In addition, the Seventh Supplemental Agreement provides for certain further amendments to the 2008 CreditFacility to allow Preem the flexibility to continue to utilize the facilities and letters of credit under the 2008 Credit Facilityuntil September 16, 2011 while the exchange offer and consent solicitation is ongoing. The Seventh Supplemental Agreementalso provides for certain additional events of default under the 2008 Credit Facility if the lock-up agreement with certainbondholders is terminated or amended or the exchange offer and consent solicitation is terminated or withdrawn.The New Credit Facility provides Preem with a $650 million (equivalent) term loan and a $1,850 million(equivalent) multi-currency revolving facility, of which $73 million (equivalent) is uncommitted working capital facilities(with separate tranches denominated in both USD and SEK). The commitment of the six Nordic banks to enter into the NewCredit Facility will expire, together with the waiver under the terms of the Seventh Supplemental Agreement, on the earlierof (i) September 19, 2011 and (ii) the Scheme Launch Date and will be automatically terminated if the lock-up agreementwith certain bondholders is terminated or amended or the exchange offer and consent solicitation is terminated or withdrawn.For a description of the material terms of the New Credit Facility, see “Description of Certain Indebtedness—New CreditFacility.”2011.Ranking of our indebtedness. The following table shows the breakdown of our the total indebtedness as of June 30,June 30, 2011Borrower Current debt Long-term debt Total debt(in millions SEK)Corral Petroleum Holdings ....................................................................... 4,103 1,072 5,175Structurally senior debtPreem........................................................................................................ 11,615 — 11,615Subsidiaries of Preem ............................................................................... — — —Total......................................................................................................... 15,718 1,072 16,790Long-Term Financial Obligations and Other Commercial CommitmentsThe following table summarizes the contractual principal maturities of our long-term debt, including our currentportion, as of December 31, 2010.Contractual ObligationsTotalPayments due by periodLess than1 year 1-3 years 3-5 yearsMore than5 years(in millions SEK)Other long-term debt obligations................................................ — — — — —Operating lease obligations......................................................... 504 86 214 143 612008 Credit Facility .................................................................... 9,671 9,671 — — —Existing Notes ............................................................................ 3,947 3,947 — — —Subordinated Notes..................................................................... 1,012 — — 1,012 —Total........................................................................................... 15,134 13,704 214 1,155 61In addition to our long-term financial obligations, we also have long-term commercial commitments, comprising ouroperating lease obligations. For a description of the amounts outstanding under our operating lease obligations as ofDecember 31, 2010, see note 11 to our audited consolidated financial statements as of and for the year ended December 31,2010.Restrictions on Transfers of FundsCorral Petroleum Holdings is a holding company. As a holding company, to meet its debt service and otherobligations, Corral Petroleum Holdings is dependent upon equity contributions from its parent company, MoronchaHoldings, or its shareholder, dividends, permitted repayment of intercompany debt, if any, and other transfers of funds fromPreem. Substantially all of Corral Petroleum Holdings’ present assets consist of 100% of the share capital of Preem.28