10th Sep 2021 09:46
(Alliance News) - Hurricane Energy PLC on Friday said the final acceptance amount for the tender offer of its USD230 million in 7.5% convertible bonds due 2022 will be USD78.0 million.
The purchase price will be 78% of the principal amount off the bonds.
The Surrey, England-based producer from Lancaster oil field, located west of Shetland first opened the tender offer at the end of August.
"The purpose for the offer is to utilise a portion of the group's available cash balances to purchase bonds prior to their maturity as part of a proactive liability management exercise on the group's outstanding debt. The offer will also provide liquidity and certainty of outcome to those holders whose bonds are accepted in the offer, given the range of future dynamic factors and uncertainties which are outside the company's control," Hurricane said at the time.
The offer is set to be settled on Wednesday next week, and the bonds will have an outstanding principal amount of USD152.0 million.
"I am pleased that the company has been able to buy back more than 33 per cent of the outstanding bonds. This will reduce the par value of bonds held by third parties to USD152 million, utilising USD62 million of net free cash (inclusive of accrued interest)," said Chief Executive Officer Antony Maris.
"This is a positive development for the company in managing its outstanding debt," Maris added.
Shares in Hurricane Energy were up 2.3% at 2.55 pence on Friday in London.
By Dayo Laniyan; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
HUR.L