KrisEnergy unit completes $35m tap issue
Thursday, May 30 2013 - 02:48 AM WIB
KrisEnergy Ltd, an independent upstream oil and gas company, announced Thursday that its wholly owned subsidiary, KrisEnergy Holding Company Ltd., has completed a US$35 million tap issue to its existing US$85 million senior guaranteed secured bonds and also has increased its revolving credit facility to US$42.5 million from US$30 million.
The company said in a statement that the $35 million tap issue was three times subscribed and attracted demand from accounts in Asia, Europe and the United States. The tap issue was priced at 105% of the face value and retains the same terms as the existing five-year notes on issue.
?We have seen good appetite for our bonds since they were initially issued in July 2011 and the speed at which this transaction was executed, with placement and pricing completed within 24 hours of the deal announcement endorses the high level of interest and trust of investors in KrisEnergy and validates our ability to access the financial markets. Our portfolio has grown by two-thirds since we first issued bonds in 2011 and this latest issuance is in line with our strategy to maintain a moderate level of gearing,? said Stephen Clifford, Chief Strategy Officer and Vice President Treasury.
The new notes and the increased revolving credit facility share the same security of all of the subsidiaries of the Company, which includes all of the oil and gas contract areas in the group?s portfolio.
The proceeds of the new issue will be used for working capital and general corporate purposes. The revolving credit facility is undrawn.
KrisEnergy owns stakes in various oil and gas assets in Indonesia including the Bulu PSC (42.5%), East Muriah PSC (50%), East Seruway PSC (100%), Glagah-Kambuna TAC (25%), Kutai PSC (54.6%), Tanjung Aru PSC (43%), and Udan Emas PSC (100%).
Editing by Reiner Simanjuntak