Genel Energy PLC Completion of $230 million senior unsecured bonds (4970I)
March 26 2015 - 3:01AM
UK Regulatory
TIDMGENL
RNS Number : 4970I
Genel Energy PLC
26 March 2015
26 March 2015
Genel Energy plc
Completion of private placement of U.S. $230 million senior
unsecured bonds
Genel Energy ("Genel") plc is pleased to announce that it has
priced an issue of U.S. $230 million in senior unsecured bonds
("the Bonds") due 14 May 2019 on the same commercial terms as the
existing GENEL01 PRO U.S. $500 million bond. The Bonds were issued
at a market price in line with the trading level of GENEL01
PRO.
Fosun Group was a lead investor in the bond issue.
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 ("KRI")
strategy. After the successful issuance of the Bonds, the average
cost of debt on the Company balance sheet is 8.7%.
In the KRI, production at the Taq Taq and Tawke fields continues
to increase as planned. New gross daily production records have
been set at both fields, with Taq Taq production having recently
surpassed 142,000 bopd, and Tawke 147,000 bopd.
The temporary domestic market sales channel, implemented by the
Kurdistan Regional Government ("KRG"), 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.
The oil export agreement between the KRG and Federal Government
of Iraq is being fully implemented, and both sides remain firmly
committed to the agreement. Production from the Kurdistan Region of
Iraq has risen to record levels, with exports by the KRG for
marketing by SOMO increasing in line with mutually agreed
forecasts, and in turn budget payments have been transferred to
Erbil. This reinforces our expectation that payments for exports
will be received through 2015.
Settlement date for the new Bonds is expected on or about 9
April 2015. Following settlement of the new Bonds, the Company
intends to call for a bondholder meeting in the existing GENEL01
PRO bond. The meeting will seek approval for a merger of the two
bond issues into one enlarged bond with a combined amount of U.S.
$730 million listed on the Nordic ABM.
Pareto Securities has acted as manager for the transaction.
For further information, please contact:
Genel Energy
Julian Metherell, Chief Financial
Officer
Phil Corbett, Head of Investor
Relations
Andrew Benbow, Head of Public
Relations +44 20 7659 5100
Vigo Communications
Patrick d'Ancona +44 20 7016 9573
Notes to editors:
Genel Energy is an independent oil and gas exploration and
production company listed on the main market of the London Stock
Exchange (LSE: GENL). The Company, with headquarters in London and
additional offices in Ankara and Erbil, is the largest independent
oil producer and the largest holder of reserves and resources in
the Kurdistan Region of Iraq and, through its Miran and Bina Bawi
gas fields, is set to be a cornerstone provider of gas to Turkey
under the KRI-Turkey Gas Sales Agreement. Genel also continues to
pursue further growth opportunities within the Middle East and
Africa. For further information, please refer to
www.genelenergy.com.
Disclaimer
This announcement contains certain forward-looking statements
that are subject to the usual risk factors and uncertainties
associated with the oil & gas exploration and production
business. Whilst the Company believes the expectations reflected
herein to be reasonable in light of the information available to
them at this time, the actual outcome may be materially different
owing to factors beyond the Company's control or within the
Company's control where, for example, the Company decides on a
change of plan or strategy. Accordingly no reliance may be placed
on the figures contained in such forward looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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