Seplat Petroleum announces success of $300m RCF deal

Despite price losses that outweighed gains, trading on the equities sector of the Nigerian Stock Exchange (NSE) was on the upbeat yesterday, as major highly capitalised stocks, especially Nestle and Mobil appreciated in price, causing the  All-share index to increase marginally by 0.04 per cent
 
Yesterday, the All-share index rose by N6 billion or 0.04 per cent to 43,073.45 from 43, 056.51 achieved on Monday. Similarly, market capitalisation increased by N6 billion from N15.402 trillion to N15.408 trillion.
 
Nestle emerged the day’ s highest price gainer with N20.00 kobo to close at N1400 per share while Mobil followed with N8.70 kobo to close at N183.70 per share.26 stocks constituted the gainers’ chart yesterday, led by Dangote Cement with N3.40 kobo to close at N268.40 per share. Total Nigeria Plc gained N2.90 kobo to close at N249.00 per share. Guinness also added 0.80 kobo to close at N99.80 per share. 

However, 39 stocks depreciated in price as Unilever topped the losers’ chart with N3.00 kobo to close at N57.80 per share while GlaxoSmithKline followed with N1.10 kobo to close at N20.90 per share. Dangote Sugar Refinery lost N1.05 kobo to close at N22.30 per share. National Salt Company of Nigeria shed N1.00 kobo to close at N22.00 per share. Zenith Bank depreciated by 0.55 kobo to close at N30.45 per share.
 
Further breakdown of yesterday’s transactions showed that Zenith Bank was investors’ delight yesterday with 70 million shares worth N2.1 million while FBN Holding followed with 53 million units valued at N605 million.Mansard accounted for 50 million units worth N137 million. United Bank for Africa traded 27 million shares valued at N336 million. Skye bank also recorded 19 million shares valued at N16 million.
   
On the whole, investors exchanged 407 million shares worth N6 million in 5,247 deals, lower than 831 million units worth N10 billion that changed hands in 5,651 deals on Monday. Meanwhile, Seplat Petroleum Development Company Plc leading Nigeria indigenous oil and gas company listed on both the NSE and London Stock Exchange, yesterday, announced that it has successfully refinanced its existing $300 million Revolving Credit Facility (RCF)due December 2018 with a new four year $300 million revolving credit facility due June 2022.

According to a statement posted on the NSE website, the RCF carries initial interest of Libor +6 per cent payable semi – annually. It explained that in conjunction with the issuance of the $350 million 9.25 per cent senior notes due 2023 (the Notes), the company envisages its pro forma gross debt post – closing of both the Notes and the RCF (expected to occur on 21 March 2018) will be $550 million. 
 
It added that the proceeds from the Notes and RCF will be used to repay and cancel existing indebtedness. Seplat’s Chief Financial Officer, Roger Brown, said: “This successful re–financing reflects the confidence that the market has continued to show in our business and ability to proactively manage our balance sheet even through challenging times.
 
“Our debut bond issuance further diversifies our capital base and along with the new RCF strengthens our liquidity position which will allow us to scale up our work programme and focus on delivering our growth strategy.”