(Alliance News) - Hurricane Energy PLC said on Wednesday it has repurchased USD28.7 million of convertible bonds, due in 2022, for USD27.7 million.
The bonds were acquired from Stifel Nicolaus Europe Ltd, a London-based investment bank, and will be surrendered for cancellation. Following cancellation, the company will have reduced its bonds outstanding to USD79.8 million.
The Surrey-based oil exploration and production company added that the repurchase generated a net saving of USD2.6 million.
As a result of the repurchase and the USD78.0 million tender offer settled on September 15, the company said it has generated a combined net saving of USD29.4 million in debt repayment and interest charges.
Chief Executive Antony Maris said: "Balancing reducing our debt whilst maintaining an appropriate cash balance in the current economic and volatile oil price climate are a challenge while we focus on meeting our debt repayment obligations. We will continue to look at all options to bridge any funding gap for the repayment of the bonds while taking opportunities to generate net savings for the company."
Shares in Hurricane Energy were up 5.1% at 4.26 pence on Wednesday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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