Nigerian indigenous oil and gas giant- Seplat Petroleum Development Company Plc, on Tuesday said it successfully refinanced its existing $300m revolving credit facility due December 2018 with a new four-year $300m Revolving Credit Facility (RCF) due June 2022 with initial interest of Libor (London Inter-Bank Offer Rate) +6% payable semi-annually.
In a notice to the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), the company said in conjunction with the issuance of the $350m 9.25% Senior Notes due 2023.
According to the statement, the company says it “envisages its pro forma gross debt post-closing of both the Notes and the RCF (expected to occur on March 21, 2018) will be $550m.
“The proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness.”
Commenting, Roger Brown, Seplat’s Chief Financial Officer said in the statement that “this successful refinancing 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 aloow us to scale up our work programme and focus on delivering our growth strategy.”