11th Oct 2016 06:51
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Tuesday said it has received valid acceptances for reinstated notes following its restructuring and will issue further notes to its lenders.
The oil producer, which operates the Shaikan field in the Kurdistan region of Iraq, recently restructured its debt. It lowered debt by some USD600.0 million by converting it into large amounts of equity. Debt would stand at about USD100.0 million post-restructuring.
However, existing shareholders will be watered down to a mere 5.0% once the debt has been converted, but they do have the ability to participate in an associated, USD25.0 million open offer that would, if all shareholders took up their entitlement, raise that stake to 14.5%. Note holders would own around 65.5% whilst the bond holders would have the other 20%.
Gulf Keystone said on Tuesday it has received valid and deemed elections for reinstated notes of USD10.9 million of the principal USD250.0 million in guaranteed notes. Under the terms of its restructuring, the company will issue USD100.0 million in reinstated notes to its noteholders, plus 21.91 billion shares under the terms of the open offer and debt equitisation it agreed.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Gulf Keystone Petroleum