Seplat Petroleum Development Company Plc, an indigenous oil and gas company listed on both the Nigeria Stock Exchange (NSE) and London Stock Exchange (LSE) 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.
The RCF carries initial interest of Libor +6 per cent payable semi-annually.
In conjunction with the issuance of the $350 million 9.25 per cent senior notes due 2023, the pricing of which was announced separately yesterday, 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 company said in a notice to the NSE that the proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness.
Commenting on the 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.”
Seplat Petroleum Development Company Plc recorded N81.1 billion in Profit After Tax (PAT) for the 2017 financial year from a loss of N45.4 billion posted in FY:2016.
Gross revenue spiked 118.2 per cent to N138.3 billion, which according analysts, was unsurprising given the relative peace in the Niger Delta region in 2017, which translated to higher production volumes for the Company.
Commenting on the results Austin Avuru, Seplat’s Chief Executive Officer, said: “I am pleased to report that Seplat made a return to full-year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast we were plagued throughout most of the first half by force majeure at the Forcados terminal.
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