Seplat Energy refinances $350 million revolving lines of credit maturing December 2023
Seplat Energy Plc successfully refinanced its existing $350 million Revolving credit facilityRCF maturing in December 2023 with a new three-year $350 million revolving credit facility maturing in June 2025.
The company said so in a statement on the Nigerian Stock Exchange signed by Chief Financial Officer Emeka Onwuka.
According to the company, the RCF includes an automatic maturity extension to December 2026 once a refinancing of the existing $650 million bond maturing in April 2026 is implemented.
What they say
He stated, “Seplat Energy Plc announced that it has successfully refinanced its existing $350 million revolving credit facility maturing December 2023 with a new $350 million revolving credit facility maturing June 2025
“The RCF includes an automatic maturity extension to December 2026 once a refinancing of the existing $650 million bond due April 2026 is implemented. The RCF is expected to be reduced from July 2024, with this date automatically extended to July 2025 once the refinancing of the existing $650 million bond maturing in April 2026 is implemented.
The news continues after this announcement
“The RCF bears an initial interest of 6% on the base rate (SOFR plus applicable credit adjustment spread) with a margin reduced to 5% after production through the Amukpe-Escravos pipeline is stabilized at a average work interest production of at least 15,000 BPD over a period of 45 consecutive days. Pricing is consistent with existing RCF pricing, although it reflects a change in the base rate from LIBOR to SOFR plus the applicable credit adjustment spread.
What you should know
- Nairametrics reported that Seplat Energy Plc has spent more than $450 million on goods and services provided by companies linked to its two founders over 12 years, most of it after the company went public in London and Lagos in 2014. .
- Seplat, which could be subject to major expansion after reaching an agreement with Exxon Mobil Corp., made the payments to 18 companies associated with former chairman Ambrosie Bryant Orjiako and former chief executive Austin Avuru, according to the company’s annual reports.