By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-First listed Nigerian oil and gas upstream firm, Seplat Petroleum Development Company Plc (SEPLAT) said on Thursday it has successfully refinanced its existing debt facilities with $1 billion of new facility split between a $700 million seven (7) year secured term facility and $300 million three (3) year secured revolving credit facility.
According to the company in a statement to both the Nigerian and London Stock Exchanges, the seven (7) year facility also includes an option for the company to upsize the facility by up to an additional $700 million for qualifying acquisition opportunities.
“The Company also provides an update on its operations where it has delivered on full year 2014 guidance,” the statement affirmed.
Austin Avuru, Seplat’s chief executive officer said”We are pleased to have extended our banking relationships with several existing and new lenders, both Nigerian and international.”
He added that the successful re-financing, which commenced several months ago, significantly enhances the company’s already robust capital structure and underscores the quality of its asset base.
This is coming on the heels of the proposed merger with Afren Plc, a U.K. oil and gas explorer. Afren had late December 2014 given a January 19, 2015 deadline to Seplat to make a firm offer on its merger plans.
“There can be no certainty that an offer will be made or as to the terms of any offer. Afren notes that in accordance with Rule 2.6(a) of the Code, by no later than 5.00 p.m. on 19 January 2015, Seplat must either announce a firm intention to make an offer for Afren under Rule 2.7 of the Code or announce that it does not intend to make an offer for Afren, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code,” Afren said.
At the end of the session’s transaction on the Nigerian bourse, Seplat shares gained 3.13 percent to 310 naira from 301.11 naira; while it added 1.1 percent to 117.75 pence at the London Stock Exchange; halting a five (5) day slide.
In the same vein, Afren climbed up 24 percent, the highest advance since 2009 and reducing a loss this year to 43 percent. “The company’s market value increased to £296 million ($451 million),” according to a Bloomberg report.
