As part of a larger debt refinance effort to improve its financial condition and lower debt payments, Seplat Energy Plc has announced the start of a $650 million senior notes issuance that is due in 2030.
Seplat Energy intends to buy back its $650 million 7.750 percent senior notes that are due in April 2026, giving investors a chance to sell their shares before the expiration date of March 18, 2025, according to a statement submitted to the Nigerian Exchange on Tuesday.
The indigenous energy company stated, “Seplat Energy Plc, listed on the Main Market of the London Stock Exchange and the Premium Board of the Nigerian Exchange Limited, has launched an offering of $650m Senior Notes due 2030. The net proceeds of the offering will be used to repurchase the issuer’s outstanding 7.750 per senior notes due 2026 and pay transaction fees and expenses.”
Effective management of financial liabilities
The new service, according to the corporation, will enable it to effectively manage its liabilities while maintaining financial stability.
In order to repurchase its current 2026 notes, it issued a concurrent tender offer. If the financing requirement is met, the settlement date is anticipated to be March 21, 2025.
“The Tender Offer expiration and withdrawal deadline is set for 5:00 pm NYT on March 18, 2025, pursuant to the Offer to Purchase dated March 11, 2025,” Seplat Energy stated in the filing.
The energy company added that any remaining 2026 notes will be redeemed in accordance with the conditions of the indenture governing such notes if the financing condition is satisfied.
“Following completion of the Tender Offer and provided the Financing Condition is met, Seplat intends to redeem any remaining 2026 Notes under the terms of the indenture governing the 2026 Notes dated April 01, 2021 (as amended or supplemented),” it said.
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Limitations of sales in US, UK, EU
The securities sold under the refinancing plan, according to Seplat Energy, are not registered under U.S. securities rules, which limits their sale in the US, the EU, and the UK unless certain exemptions apply.
“This communication is not an offer of securities for sale in the United States. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act,” the statement read.
Although final allocations are still at Seplat’s discretion, the business also highlighted that investors who take part in the tender offer will be given preference when it comes to the new notes.
“When considering any potential allocation of New Notes, the Company intends, but is not obligated, to give some degree of preference to those investors who, before such allocation, have validly tendered, or have indicated to the Company or the Dealer Managers their firm intention to tender Notes in the Offer,” it disclosed.
“The purpose of the tender offer, together with the proposed offering of senior notes by the company announced on March 11, 2025, is to manage the financial liabilities and cost of debt financing of the group,” Seplat Energy stated.
Seplat Energy Plc reported N1.652 trillion in revenue for the fiscal year 2024, which is a substantial increase over the previous year’s N696.9 billion.