10th Apr 2015 07:55
LONDON (Alliance News) - Oil and gas company EnQuest PLC on Friday said it has launched a consent solicitation on its USD155 million of 2022 notes.
The company said it has invited holders of the notes to amend the financial covenants on the notes and to temporarily amend the rate of interest, currently at 5.5%, to 7.0% when required.
On the financial covenants, it has proposed the leverage ratio will be less than 5.0:1.0, from the current 3.0:1.0 and the ratio of EBITDA to finance charges will not be less than 3.0:1.0, from 4.0:1.0 now.
"This is a prudent and precautionary step to provide us with the flexibility to complete the capital expenditure programme that will significantly enhance the group's production and cash flow," said EnQuest Chief Executive Amjad Bsiesu.
Shares in EnQuest were up 1.3% to 40.00 pence on Friday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Enquest