Bloomberg NewsNEW YORK - Amerada Hess Corp., the nation's eighth-largest oil and natural gas company, said Goldman, Sachs & Co. will arrange $3 billion of loans to finance its acquisition of Lasmo PLC, an oil exploration and production company.
New York-based Hess agreed Monday to buy London-based Lasmo for $5 billion of cash, stock, and assumed debt to raise production in the United Kingdom and Venezuela. Goldman advised Hess on the transaction and agreed to arrange the loans, which it says it plans to sell to other banks.
About $1 billion of the credit facility is to be structured as a 364-day loan, according to Carl Tursi, a spokesman for Hess. Part of the facility, he said, could be replaced by long-term financing such as bonds.
Hess also has a $2 billion, five-year revolving credit arranged by Chase Manhattan Corp. This loan, arranged in 1997, will remain in force.