Nostrum Oil & Gas Aims to Complete Debt Restructuring by Mid-2022 -- Update

By Jaime Llinares Taboada

Nostrum Oil & Gas PLC said Friday that it is focusing on completing its bond restructuring by mid-year.

The oil-and-gas company said that 77% of its noteholders have signed or acceded the agreement for the restructuring of its outstanding $1.1 billion debt. The company is now focusing on satisfying all required conditions, it said.

Last month Nostrum, its largest shareholder and an ad hoc committee of noteholders 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 included 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 03:50 ET (08:50 GMT)

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