Petroleum Africa
Find us on: 
Monday, March 20, 2023
PGS ASA and/or its subsidiaries has successfully placed a new $450 million senior secured bond with 4-year tenor (the Bonds). The proceeds from the Bonds will together with cash held on balance sheet be used to repay $600 million of the company’s Term Loan B (the “TLB”) maturing in March 2024 at par value (the “Transaction”). The Transaction is expected to be completed around March 31, 2023.
The offshore seismic market is in strong recovery as multiple years of underinvestment in oil and gas exploration and development, combined with a materially changed energy security situation, drive a strong increase of E&P spending.
The Transaction materially improves the Company’s debt maturity profile while still allowing PGS flexibility to pursue its deleveraging strategy without incurring excessive costs.
Early February PGS made a repayment of $83 million on its export credit financing (ECF) loans. The remaining balance of the ECF loans is $180 million gross (~$140 million net, if considering ~$40 million of restricted cash for debt service on the ECF loans).
The Bonds will carry a fixed interest of 13.5%. The total interest costs for the Company will be reduced following the Transaction as the Company will have significantly less debt. In addition, the interest on the remaining portion of the TLB is expected to be reduced by approximately 1% as a result of improved credit ratings and lower leverage. The Company remains committed to continue reducing its debt and thereby further reduce interest cost.
PGS retains a strong liquidity reserve after the debt repayments.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
