Business
Seplat launches $650m notes offering as part of refinancing strategy
Indigenous energy firm, Seplat Energy Plc has launched a $650m senior notes offering due in 2030 as part of its broader debt refinancing strategy aimed at optimising its financial position and reducing debt costs.
According to a statement filed with the Nigerian Exchange on Tuesday, the latest move comes as Seplat Energy seeks to repurchase its existing $650m 7.750 per cent senior notes due in April 2026, offering investors an opportunity to tender their holdings before the expiration deadline set for March 18, 2025.
“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,” the company stated.
The new offering, it said, will allow it to efficiently manage its liabilities while ensuring financial stability. It launched a concurrent tender offer to repurchase its existing 2026 notes, with the settlement date expected on March 21, 2025, subject to meeting the financing condition.
“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.
The energy firm further clarified that if the financing condition is met, any remaining 2026 notes will be redeemed under the terms of the indenture governing those notes.
“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.
Seplat Energy noted that the securities offered under the refinancing initiative have not been registered under U.S. securities laws, restricting their sale in the United States, the European Economic Area, and the United Kingdom except under specific exemptions.
“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.
The company also emphasised that investors who participate in the tender offer will be prioritised in allocating the new notes, though final allocations remain at Seplat’s discretion.
“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 announced a revenue of N1.652 trn for the fiscal year 2024, marking a significant rise from N696.9b in the previous year