Nigeria’s Seplat raises $300 million in RCF bonds sale

seplat

Nigeria’s Seplat Petroleum Development Company Plc said it had a successful outing for its revolving credit facility bond sale.

The company said it successfully raised the $300 million RCF bond to investors.

The revolving credit facility is to refinance its $300 million debt due December 2018 with a new four year US$300 million revolving credit facility due June 2022 The RCF carries initial interest of Libor +6% payable semi-annually.

In conjunction with the issuance of the US$350 million 9.25% senior notes due 2023 (the “Notes”), the pricing of which was announced separately today, the Company envisages its pro forma gross debt post-closing of both the Notes and the RCF (expected to occur on 21 March 2018) will be US$550 million. The proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness.

Commenting on today’s announcement 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. Our debut bond issuance further diversifies our capital base and along with the new RCF strengthens our liquidity position which will allow us to scale up our work programme and focus on delivering our growth strategy.”