Salamander Energy announces that it has successfully placed a US$150 million unsecured bond issue.
The bond has a term of 6 years and 1 month and will be repaid as a bullet at maturity. The bond carries a coupon of 9.75 percent and will be issued at par. Settlement date is expected to be 6 December 2013 and an application will be made to list the bond on the Nordic ABM or the Oslo Stock Exchange.
The proceeds from the bond issue will be used for the general corporate purposes of the Group, including the refinancing of the Group's existing US$50 million Kerendan Bridge Facility and, at Salamander's discretion, up to US$100 million of Convertible Bonds.
Post these transactions, Salamander's debt portfolio will be simplified to a secured 7-year Reserve Based Lending Facility (up to US$350 million) and the unsecured bond, with the Group's net debt position remaining largely unchanged. Salamander's weighted average cost of borrowing across its portfolio will then be approximately 6.2 percent.
Chief Executive, James Menzies, commented:
"This is the first time Salamander has entered the bond market and we are pleased with the level of support that the bond has received from investors. The proceeds will be used to refinance the Company's short-term debt and will provide Salamander with a robust platform from which to commercialise our large base of contingent resources into reserves and ultimately into continued production growth."
Pareto Securities acted as Sole Manager and Bookrunner of the Bond Issue. Rothschild provided independent financial advice to Salamander.
+ 44 (0)20 7432 2680
James Menzies, Chief Executive Officer
Geoff Callow, Head of Corporate Affairs
+44 (0)20 7404 5959
Salamander Energy is an independent upstream oil and gas exploration and production company listed on the main market of the London Stock Exchange (Ticker: SMDR). The Group is focused on growth assets in and around three core areas: Greater Bualuang, Gulf of Thailand; North Kutei, Indonesia; and Greater Kerendan, Indonesia. In each of these areas the Group has a material, operated position and a detailed understanding of the petroleum systems of the basin.