Seplat Energy, the Nigerian energy giant co-founded by Austin Avuru and Ambrosie Orjiako, has announced a $650 million senior notes offering due in 2030 as part of a strategic refinancing plan aimed at reducing financing costs and strengthening its balance sheet.
The dual-listed company, which trades on both the London Stock Exchange (LSE) and the Nigerian Exchange (NGX), disclosed the offering in a regulatory filing on Tuesday. The proceeds from the new notes will be used to buy back Seplat’s existing $650 million senior notes, which carry a 7.75% interest rate and are set to mature in April 2026.
As part of the refinancing process, Seplat has launched a tender offer, allowing investors to sell back their 2026 notes before the March 18, 2025, deadline. Settlement is expected by March 21, 2025, subject to financing conditions.
“This will help us manage our financial liabilities more efficiently, strengthen our balance sheet, and maintain long-term stability,” Seplat stated in its announcement.
Debt Restructuring to Improve Financial Flexibility
Seplat confirmed that once the tender offer is completed and the financing condition is met, any remaining 2026 notes will be redeemed under the indenture dated April 1, 2021.
The company also clarified that the new bonds are not registered under U.S. securities laws, meaning they can only be sold under specific exemptions in the United States, the European Economic Area (EEA), and the United Kingdom.
“This announcement does not constitute an offer to sell securities in the United States,” Seplat emphasized, ensuring compliance with regulatory requirements.
Additionally, investors who participate in the tender offer will receive priority in the allocation of new notes, though Seplat retains discretion over final allotments.
“We intend, but are not obligated, to prioritize investors who validly tender or confirm their intention to tender their holdings,” the company stated.
Seplat’s Expansion Plans and Financial Performance
Seplat has reinforced its leadership in Nigeria’s energy sector with major acquisitions, including an $800 million deal for ExxonMobil’s Nigerian assets. The company has also committed up to $320 million for onshore oil and gas expansion, further cementing its position in the upstream sector.
For the financial year ending December 2024, Seplat reported:
•137% increase in revenue to N1.652 trillion ($1.11 billion), up from N696.9 billion ($1.06 billion) in 2023.
•Operating profit surged to N647.9 billion ($437.9 million), compared to N163.7 billion ($249.4 million) year-on-year.
Seplat’s refinancing strategy, which includes the tender offer and new senior notes issuance, aligns with its broader goal of optimizing debt management, reducing financing costs, and driving long-term growth.
“The tender offer, along with the new senior notes issuance, is part of our strategy to optimize debt management and reduce financing costs,” Seplat said.
With this latest move, Seplat is positioning itself for greater financial flexibility and sustained investor confidence amid Nigeria’s evolving oil and gas landscape.
