Southern Pacific Resource Corp. (TO: STP.TO), Credit Suisse AG and its affiliate entered into an agreement for Southern Pacific Resource’s new first-lien term loan facility whose aggregate principal amount equals US$150 million, the company said March 26.

The new first-lien loan will have a five-year term with a March 28 maturity date, and is scheduled to close and be funded on that date, the company said. It will bear Libor interest plus 10%, the company added.

This new loan facility will replace the existing CA$100 million first-lien credit facility, Southern Pacific Resource said.

The existing facility has an availability limit of CA$85 million and matures May 31, the company added.

Less-restrictive financial and negative covenants under the new facility will replace older, more restrictive ones, Southern Pacific Resources said.

Southern Pacific Resources plans to begin work on STP-McKay and STP-Senlac with the incremental liquidity, the company said, noting that work on STP-McKay wells should begin in mid-April and that a three-well program should begin on STP-Senlac in the summer.

Credit Suisse AG led the loan's underwriters, the company noted.

Calgary, Alberta-based Southern Pacific Resource Corp. explores, develops and produces oil sands in the province’s Athabasca region.