Seplat Petroleum to Raise $650 Million to Redeem Existing $350 Million Debt

Seplat Petroleum Development Company Plc, a leading indigenous energy company listed in Nigeria and the United Kingdom, has announced it has priced its offering of $650 million in aggregate principal amount of 7.75 percent senior notes due 2026 (the “Notes”).

According to the company, the Notes will be issued by the Company and guaranteed by certain of its subsidiaries.

It added that the gross proceeds of the Notes will be used to redeem the existing $350 million 9.25 percent senior notes due 2023, to repay drawings of $250 million under the existing $350 million revolving credit facility, for general corporate purposes, and to pay transaction fees and expenses.

On Monday, S&P Global Ratings revised Seplat’s rating from negative to stable, saying “We revised our outlook on Seplat to stable from negative and affirmed our ‘B’ rating, while assigning a ‘B’ rating to the proposed senior unsecured notes, S&P Global Ratings stated.

“The rating on the existing $350 million notes remain ‘B-‘ until redeemed after issuance of the proposed notes.

“The stable outlook reflects our expectation that Seplat will maintain FFO to debt higher than 30% on average over the next three years.”