Seplat refinances US$300m revolving credit facility

Seplat Petroleum Development Company Plc, has announced that it has successfully refinanced its existing US$300 million revolving credit facility due December 2018 with a new four year US$300 million revolving credit facility due June 2022 (the “RCF”).

The company’s Chief Financial Officer, Mr. Roger Brown announced this in signed publication by the NSE noted that the RCF carries initial interest of Libor +6 per cent 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 Tuesday , 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 further revealed that proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness.

Commenting on Tuesday’s announcement Seplat’s Chief Financial Officer, Roger Brown, Seplat’s 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.”

Stories: Bonny Amadi