26th Mar 2015 08:21
LONDON (Alliance News) - Genel Energy PLC Thursday said it has priced its USD230 million senior unsecured bond issue on the same commercial terms as its existing GENEL01 PRO US USD500 million bond, and that Chinese conglomerate Fosun Group was a lead investor in the bond issue.
In a statement, Genel Energy said the bonds were issued at a market price "in line with the trading level" of GENEL01 PRO.
It said that the settlement date for the new bonds is expected on or about April 9. It plans to call for a bondholder meeting over the existing GENEL01 PRO bond, at which it will seek approval for a merger of the two bond issues into one enlarged bond with a combined amount of USD730 million listed on the Nordic ABM.
"Financial discipline and a robust balance sheet are crucial in the oil and gas industry, and a source of competitive advantage at a time of low oil prices. The net proceeds of the bonds will be used to underpin Genel's financial strength and provide flexibility to implement our refocused Kurdistan Region of Iraq strategy," Genel said.
The company said the bond issue will mean that the average cost of debt on its balance sheet will be 8.7%.
Meanwhile, it said that production at the Taq Taq and Tawke fields in the Kurdistan Region of Iraq is increasing as planned, with "new gross daily production records" set at both fields.
It said that Taq Taq production "recently" surpassed 142,000 barrels of oil per day, while Tawke reached the 147,000 level.
"The temporary domestic market sales channel, implemented by the Kurdistan Regional Government, under which contractors receive 50% of domestic sales proceeds, has run successfully for Taq Taq through February and March 2015. Around 30-40,000 bopd continues to be sold locally, and cash received in line with expectation. Domestic sales from Tawke have increased throughout March," Genel said.
Genel shares were up 2.5% at 515.50 pence early morning on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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