Seplat Petroleum Development Company Plc mandated Citi, J.P. Morgan, Standard Bank and Standard Chartered Bank as Joint Global Coordinators and Natixis, Rand Merchant Bank and Société Générale as Joint Bookrunning Managers to organize a Global Investor Call along with a series of 1×1 meetings with fixed income investors.
Seplat told the Nigerian Exchange (NGX) Limited that the proceeds from the proposed bond issuance will be used to redeem the existing Seplat 2023 notes, repay drawings under the Revolving Credit Facility, for general corporate purposes, and to pay transaction fees and expenses.
The leading independent indigenous upstream oil and gas company operating in Nigeria and rated B2 by Moody’s, B by S&P and B- by Fitch, said in proposed bond statement issued on Monday March 22, that “a benchmark 5NC2 year US$-denominated Regulation S/Rule 144A senior unsecured guaranteed notes offering will follow, subject to market conditions.”
This comes on the heels of the oil and gas company notifying investors of the conditional redemption of its $350million aggregate principal amount of 9¼percent Senior Notes due 2023. The Issuer has elected to redeem the entire outstanding principal amount of the Notes outstanding on April 1, 2021.
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The terms and conditions of the redemption are as follows: subject to the satisfaction or waiver of the Condition Precedent by the Issuer, the redemption date for the Notes will be April 1, 2021. The record date, on which any holder of Notes must hold any Notes to be entitled to the Redemption Price will be March 30, 2021, being the business day immediately prior to the Redemption Date.
The redemption price of the Notes is 102.3125percent of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest from October 1, 2020 (the last Interest Payment Date for which interest on such Notes was paid) to (but not including) the Redemption Date, and Additional Amounts, if any (the Redemption Price). Assuming a Redemption Date of April 1, 2021, the Issuer will have paid prior to the Redemption Date, the accrued and unpaid interest from October 1, 2020, to, but excluding, the Redemption Date, which will be $16,187,500 ($1,069.38 per $1,000 denomination).
The Notes called for redemption must be surrendered to Citibank N.A., London Branch as Paying Agent, at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, United Kingdom, Attention: Agency and Trust, to collect the Redemption Price plus accrued interest, if any, and Additional Amounts, if any. Unless the Issuer defaults in making the redemption payment in the amount of the Redemption Price or the Paying Agent is prohibited from making such payment pursuant to the terms of the Indenture, interest and Additional Amounts, if any, on the Notes (or portion thereof) called for redemption shall cease to accrue on and after the Redemption Date.
