Seplat Energy Plc has launched a $650 million Senior Notes offering as part of its broader strategy to refinance existing debt and optimize its capital structure.
The offering, which is due in 2030, is aimed at repurchasing the company’s 7.750% Senior Notes due 2026, while also covering associated transaction costs.
The energy company, listed on both the London Stock Exchange (LSE: SEPL) and the Premium Board of the Nigerian Exchange Limited (NGX: SEPLAT), announced the offering on Tuesday, stating that it aligns with its long-term financial strategy to strengthen its balance sheet and improve financial flexibility.
As part of the refinancing move, Seplat Energy has also initiated an any-and-all tender offer on its outstanding $650 million 2026 Senior Notes, contingent upon the successful completion of the new issuance. The tender offer deadline has been set for March 18, 2025, under the terms outlined in the Offer to Purchase dated March 11, 2025.
Upon completion of the tender process, Seplat Energy intends to redeem any remaining outstanding 2026 notes, subject to the terms of the indenture agreement governing the bonds.
Seplat’s debt refinancing strategy comes at a time when global debt markets remain volatile, with corporate issuers seeking to take advantage of favorable interest rate conditions to restructure outstanding obligations.
The company, a leading independent energy producer in Nigeria, remains focused on enhancing operational efficiency and maintaining a strong liquidity position, particularly as it navigates evolving market conditions in the energy sector.
Seplat Energy emphasized that while the offering and refinancing plan have been launched, there is no assurance that the transactions will be fully completed. However, the company assured stakeholders that updates will be provided as the process progresses.
With this move, Seplat Energy continues to position itself as a key player in the African energy market, balancing strategic financial management with long-term growth initiatives to ensure sustainable operations and value creation for investors.
