(Alliance News) - Energean PLC on Wednesday priced its USD2.50 billion senior secured note offering.
The FTSE 250-listed oil and gas firm has previously noted the note offer will go towards, among other things, repaying existing debt.
iEnergean Israel Finance Ltd intends to offer the USD2.50 billion senior secured notes in four equal tranches maturing 2024, 2026, 2028, and 2031.
The 2024 notes will hold a fixed annual interest rate of 4.500%, while the 2026 notes have a fixed annual interest rate of 4.875%, the 2028 notes have a fixed annual interest rate of 5.375% and the 2031 notes hold a fixed annual interest rate of 5.875%.
The issue is expected to be completed by March 24.
The fresh cash will be used to repay outstanding debt under a USD1.45 billion project finance facility and USD700 million term loan, as well as to replace existing undrawn amounts available under these facilities.
The money will help "fund certain reserve account" as well as assisting with transaction expenses. It will be used for general corporate purposes as well, Energean said.
Shares in Energean were 3.2% lower in London on Wednesday morning at 911.90 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Energean Oil & Gas (ENOG)