Seplat announces $350m bond offering to repay existing debt


Enterprise Television- Seplat announces $350m bond offering to repay existing debt

Seplat Petroleum Development Company Plc., Nigerian indigenous oil and Gas Company listed on the Nigeria Stock Exchange (NSE) and London Stock Exchange (LSE), Tuesday announced that it has priced its offering of $350 million in an aggregate principal amount of 9.25 percent senior notes due 2023.

Information made available by the company to the NSE in Lagos revealed that the gross proceeds of the notes will be used to repay and cancel existing indebtedness.

However,  the company also announced that it has successfully refinanced its existing $300 million revolving credit facility (RCF) due December 2018 with a new four year $300 million revolving credit facility due June 2022. Seplat stated that the RCF carries initial interest of Libor +6 percent payable semi-annually.

The company envisaged its pro forma gross debt post-closing of both the notes and the RCF expected to occur on 21 March 2018 will be $550 million.

According to Roger Brown, Seplat’s chief financial officer, said: “This successful re-financing reflects the confidence that the market has continued to show in our business and ability to proactively manage our balance sheet even through challenging times.

He further explained that their debut bond issuance further diversifies their capital base and along with the new RCF strengthens their liquidity position which will allow them to scale up their work programme and focus on delivering their growth strategy.”