California Resources Corp. has closed a $1.3 billion loan facility, the company announced Friday.

The Chatsworth oil producer said the money will repay outstanding debts under a 2014 credit facility. The new loan has a five-year term and bears interest at a rate of LIBOR plus 4.75 percent.

“This new term loan and the amendment of our 2014 credit facility extend the maturity of that facility, provide additional liquidity for CRC and relax certain financial covenants. Combined, these transactions provide a pathway to further delever our balance sheet,” Chief Executive Todd Stevens said in a statement.

Shares of California Resources (CRC) closed Friday up 68 cents, or 4.5 percent, to $15.91 on the New York Stock Exchange.