EnQuest plc has agreed a successful refinancing of its existing $792.3 million senior notes due 2023.
AGREEMENT
The company, with oil and gas projects in the UK North Sea and Malaysia, priced the offering of new $305m 11⅝% senior notes due 2027, which were due for settlement on 25 October 2022, at an issue price of 98.611%.
It has also agreed an amended and restated reserve-based lending (RBL) facility at $500m with a $300m accordion and a final maturity in April 2027, upon settlement of the new notes.
The refinancing follows EnQuest’s successful refinancing of its Sterling bond in April 2022, when it issued £133.3m of bonds with a maturity of October 2027.
The company will repay all its existing $792.3m senior notes due 2023, by the proceeds of the new notes, $400m of drawings under the RBL facility and cash on hand.
DOUBLE A
Double A Ltd, a company beneficially owned by the extended family of EnQuest chief executive Amjad Bseisu, has agreed to lend $15m on the same terms as all other lending parties.
EnQuest added it had obtained written confirmation from a sponsor that the terms of Double A’s participation in the RBL facility were fair and reasonable as far as EnQuest’s shareholders are concerned.