By Peter Egwuatu
Seplat Petroleum Development Company Plc, yesterday 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 RCF due June 2022.
The Chief Financial Officer, Seplat, Mr. Roger Brown, disclosed this in a statement sent to the Nigerian Stock Exchange, NSE, stating that the RCF carries initial interest of LIBOR (London Inter-bank Offer Rate) +6% payable semi-annually.
The company also stated that it had successfully raised $350 million worth of medium-term notes at 9.25 percent. Proceeds from the two transactions will be used to pay down the company’s debt and cancel its existing indebtedness. The Notes will be issued by the company and guaranteed by its subsidiaries.
Brown stated: “This successful re-financing reflects the confidence that the market has continued to show in our business and ability to proactively manage our 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.”
Seplat share closed at N780 in yesterday‘s trading session, down five percent. Year to date, YtD the stock is up 20 percent.
Full-year results ended December 31, 2017 sent to the Exchange shows that revenue increased to N138 billion in 2017 from N63.3 billion in 2016.
The company bounced back from a N47 billion loss before tax in 2016 to a N13.4 billion profit before tax in 2017. Seplat recorded N81 billion profit in 2017, largely due to a tax credit of N67.6 billion, from a N45 billion loss in 2016.