Seplat Says It Has Refinanced Its US$300m Revolving Credit Facility

Nigerian indigenous oil and gas firm,
Seplat Petroleum Development Company Plc, has announced that it has successfully refinanced its existing US$300 million Revolving Credit Facility (RCF) due December 2018 with a new four year US$300 million revolving credit facility due June 2022.

Seplat Petroleum Development Company which is listed on both the Nigeria Stock Exchange and London Stock Exchange, says the RCF carries initial interest of Libor +6 percent payable semi-annually.

In conjunction with the issuance of the US$350 million 9.25 percent senior notes due 2023, the pricing of which was announced separately on Tuesday, the Company envisages its pro forma gross debt post-closing of both the Notes and the RCF will be US$550 million.

The proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness, agency reports say.

Commenting on the announcement Roger Brown, Seplat’s Chief Financial Officer, said the successful re-financing reflected the confidence that the market had continued to show in the business and ability to proactively manage the company’s 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,” he said.

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