Nostrum Oil & Gas Agrees Terms on $1.1 Billion Bond Restructuring
January 28 2022 - 3:30AM
Dow Jones News
By Jaime Llinares Taboada
Nostrum Oil & Gas PLC said Friday that it has reached an
agreement to restructure an outstanding $1.1 billion in bonds due
in 2022 and 2025.
The oil-and-gas company, its largest shareholder and an ad hoc
committee of noteholders have agreed a partial reinstatement of the
bonds in the form of $250 million of senior secured notes with a
cash coupon of 5.0%, and $300 million senior unsecured notes with
cash coupon of 1.0% and payment-in-kind interest of 13%, both
maturing in June 2026.
The remainder of the outstanding notes, which had aggregate
principals of $725 million and $400 million, respectively, are to
be converted into equity. The final Nostrum shareholding to be
received by the noteholders will depend on the results of an
extraordinary general meeting of shareholders.
The deal also includes arrangements regarding corporate
governance, cashflow utilization and the transfer of the company's
listing to the standard listing segment of the LSE.
"This agreement removes significant obstacles as we look to
negotiate long term contracts to fill the spare capacity in our
world class processing facilities and so secure the group's medium-
and long-term future," Chief Executive Arfan Khan said.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
January 28, 2022 03:15 ET (08:15 GMT)
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