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Encouraging start this morning, SP back to around 20p but no real buying surge as yet - more clarity is needed - that will come when the prospectus is released.
Hi E - yes it is moot if we were closing shop but it sounds like FDP's are intended and there's always another deal at the right price. I'm reading nothing into the lack of an interest rate because it wouldn't mean much to most here (me included) and may be at the request of the lenders. I'm sure there are other oil companies that are even more interested in the rate. the rate in some ways is irrelevant. Look at Hurricane. It wasn't the interest rate that did for them. There wasn't any credit available.
To me, the only unknowns are the interest rate and if the equity raise is still needed (maybe it is needed and it is still a condition of this RBL that isn't called out). Does anyone really think that this new facility won't paid down by June 2023 with Brent above $65 - the whole June 2023 repayment clause is moot - the repayment will be well before that time.
We await the prospectus! Sounds like as I have suggested before we have a long term arrangement giving us headroom to cover Bond repayment in 2023 we need to see the cost will the 7 year deal enable repayment of Bonds below current 7%
With $70 oil 7 years gives Enquest all the headroom to unlock Tiger, Bressay and Bently
Luck counts,
The 50m will be in the forth coming GE prospectus cause that's were its being used. It is not part of this refinance.
There is commercial sensitivity and often the board want to say more but have restrictions imposed. It happened at Harbour when Linda Cook and Phil Kirk were walking on eggshells and policed by a financial/legal guy. They cannot leak the prospectus. We always want more information but sometimes the company cannot legally provide it. It comes under Governance and we are a responsible company.
It seems that the news of the debt facility has probably been leaked, so Enquest has cobbled together an RNS before they had a chance to finalise the details for the Golden Eagle prospectus???
GKB still in his shorts. Lol
Agree, looks like good news but the message is so hard to decipher. Will retail bonds be repaid early, what will the rate be on the new loans, will there still be an equity raise for the GE deal, what does this 2023 repayment line mean? No clue as to any of these. So yes appears good news but fear share price may be held back by nothing other than confusion. I wish whoever writes their market announcements would realise that not everybody reading them understands all the details and some clarity is advantageous for all.
I think the $50 mio is a condition and it does give added protection to the lenders. Some things are just unavoidable. I just hope the discount for LTH's is worth having. I'm happy either way but assuming it's baked into the deal.
Gkb maybe there are some terms regarding How Much interest CSN be pik and maybe milestones for amortizarion during that 7 year period? Just guesses though. As it stands its pretty confusing. Also if we end up getting a OO for the ge deal this announcement is very poorly worded...
Very welcome news this morning but rather lacking in detail as is usual with Enquest.
Everything else still to be revealed in the Golden Eagle prospectus but no indication of time frame - I did hope that we would see another RNS this morning.
What so you mean part of it? The statement says the debt facility Will be used the finance the purchase of 26,69% of GE from suncor. And the the GE deal from the beginning is to purchase 26,69% from suncor(100% of the deal). Hmmm? Or Iam just stupid hehe
The debt facility covers part of the cost of the GE transaction or am I missing something? They will still need to raise?
Hmmm I dont know.
” . 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 assets”.
But I guess time will tell!:)
Hi Mriggy - I think it will still be necessary "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."
Hi HM - EnQuest run a tight ship and that was the tiniest of leakage. The bond market is closer to those engaged in refinancing and would have heard something or seen the appointments. As usual the equity traders were staring at the price of Brent or IEA figures and looking for signs. They missed the one staring them in the face.
So we also end up with no equity raise from shareholders and no dilution of shareholders for the GE deal. Or Am I missing something?
The terms must be pretty good going by the front running on ENQ1 (aka the Retail Bond) yesterday. The YTM was suddenly pushed below 10% (c 9.5 before we kick-off today). The murkiness is starting to clear like mist on a summer morning.
More detail to come in the Golden Eagle prospectus - maybe that will be in a separate RHS before the market opens.
no mention of the interest rate payable?