EnQuest PLC New senior secured debt facility
RNS Number : 5623B
11 June 2021
EnQuest PLC, 11 June 2021
EnQuest signs new senior secured borrowing base debt facility
for $750 million to enable refinancing and the Golden Eagle
EnQuest PLC (together with its subsidiaries, "EnQuest" or the
"Group"), an independent oil and gas production and development
company listed on the London and Stockholm stock exchanges (ENQ.L
and ENQ.ST), is pleased to announce it has signed a new senior
secured borrowing base debt facility (the 'new facility') of
approximately $600 million and an additional amount of $150 million
for letters of credit for up to seven years. The new facility will
enable the Group to simplify its existing capital structure and
finance the acquisition of a 26.69% interest in the Golden Eagle
Drawdown of the new facility is in two steps:
* Step 1: Refinancing existing debt; this allows the
Group to repay in full its existing senior financing
agreement, the Sculptor capital facility and the
outstanding BP vendor loan associated with the
acquisition of the 75% interest in Magnus
* Step 2: Financing the acquisition of the interest in
the Golden Eagle Area Development.
Upon refinancing of the Group's existing high yield bonds, the
maturity of the new facility is extended to the earlier of seven
years from its signing date, or the point at which the remaining
economic reserves for all borrowing base assets are projected to
fall below 25% of the initial economic reserves forecast.
In the event the maturity of the new facility is not extended,
the amounts drawn down under steps 1 and 2 amortise such that they
are fully repaid by June 2023.
Jonathan Swinney, EnQuest Chief Financial Officer,
"I am delighted to have agreed this new facility. It enables the
refinancing and simplification of our existing capital structure
and the acquisition of the Golden Eagle assets which will add
material value, production and reserves to EnQuest.
"I would like to thank our lead banks, BNP Paribas and DNB,
together with all of the lenders, for their support and I look
forward to working with them."
Further details on the new facility will be included in the
forthcoming prospectus associated with the Group's proposed
acquisition of the Golden Eagle assets.
Notes to editors
The co-ordinating banks and initial mandated lead arrangers for
the new facility were BNP Paribas and DNB (UK) Limited.
The new facility will be subject to six-monthly borrowing base
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Ian Wood (Head of Communications and Investor Relations)
Jonathan Edwards (Senior Investor Relations and Communications
Tulchan Communications Tel: +44 (0)20 7353 4200
EnQuest is providing creative solutions through the energy
transition. As an independent production and development company
with operations in the UK North Sea and Malaysia, the Group's
strategic vision is to be the operator of choice for maturing and
underdeveloped hydrocarbon assets by focusing on operational
excellence, differential capability, value enhancement and
EnQuest PLC trades on both the London Stock Exchange and the
NASDAQ OMX Stockholm.
Please visit our website www.enquest.com for more information on
our global operations.
Forward-looking statements: This announcement may contain
certain forward-looking statements with respect to EnQuest's
expectations and plans, strategy, management's objectives, future
performance, production, reserves, costs, revenues and other trend
information. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of
factors which could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking
statements and forecasts. The statements have been made with
reference to forecast price changes, economic conditions and the
current regulatory environment. Nothing in this announcement should
be construed as a profit forecast. Past share performance cannot be
relied upon as a guide to future performance.
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(END) Dow Jones Newswires
June 11, 2021 02:00 ET (06:00 GMT)
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