(Alliance News) - Hurricane Energy PLC announced on Friday it had repurchased USD27.3 million of convertible bonds, including accrued interest, due 2022, to reduce debt.
The Surrey-based oil exploration and production company acquired the bonds from Stifel Nicolaus Europe Ltd, and will be surrendered for cancellation.
Following cancellation of all purchased bonds, Hurricane will have reduced its aggregate principal amount of the bonds outstanding to USD108.5 million and lead to a further net saving in debt repayment and interest charges of USD2.8 million.
Hurricane added that, following the convertible bond repurchase announced on Wednesday, its subsidiary Hurricane GLA Ltd has completed the repurchase of an additional USD28.5 million in aggregate principal amount of the company's USD230 million at 7.5% interest.
Chief Executive Antony Maris said: "The net savings from the bond repurchases over the past week have been of significant benefit to the company. We will continue to take advantage of the volatility in the oil price and the economic indicators, and any inbound offers from the holders of the bonds, to reduce further our outstanding debt, whilst maintaining an appropriate cash position. While bridging any funding gap for the repayment of the bonds remains a challenge, we will continue to look at all the options available to us to meet our debt repayment obligations and maximise the value of our assets."
Shares in Hurricane were up 1.0% at 4.04 pence on Friday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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