Nigeria-focused Seven Energy gets OK for PIK interest on 10¼% notes

By Angela McDaniels

Tacoma, Wash., Nov. 28 – Seven Energy International Ltd. received consents from 95.31% of the holders of its $300 million 10¼% senior secured notes due 2021, according to a company news release.

A consent solicitation for the notes began Oct. 27 and ended at 4 a.m. ET on Nov. 28.

As previously reported, the company sought consents to pay interest in kind.

For the interest payment that was due Oct. 11, noteholders who submitted consents will receive interest in kind and nonconsenting noteholders will receive interest in cash. All noteholders will receive PIK interest for the interest due on April 11, Oct. 11, 2017 and April 11, 2018.

The payment of PIK interest on April 11, 2018 is conditioned on the raising of equity capital.

The company will pay a consent payment of $7.50 for each $1,000 principal amount of notes for which a consent was delivered.

Seven Energy said it has fought a challenging business climate that includes increased militant activity in the Niger Delta, continued low oil prices, capacity and liquidity issues in the power sector, foreign exchange controls and the devaluation of the Nigerian naira.

The amendments will help the group “to better align its principal and interest payments with expected cash flows in the medium term and to establish a more stable capital structure,” according to the company.

The consent solicitation was required under an agreement reached with the holders of 77% of the 10¼% notes and the company’s 10½% senior secured notes after the company missed the Oct. 11 interest payment.

For the 10½% notes, the company implemented the terms of the agreement by way of an amendment agreement rather than a consent solicitation.

Had the consent bid failed to go through, the company could have used a scheme or schemes of arrangement in England and Wales and the British Virgin Islands to implement the proposed amendments.

The information and tabulation agent was D.F. King Ltd. (+44 20 7920 9700, seven@dfkingltd.com or sites.dfkingltd.com/seven).

The Nigeria-focused energy company is based in Lagos and London.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.