PERTH (miningweekly.com) – Oil and gas major Santos on Thursday priced a $600-million senior unsecured fix rate bond, with the proceeds to be used for refinancing a $500-million bridge facility used to part fund the Quadrant Energy acquisition, as well as for general corporate purposes.
The bonds have been priced at a fixed coupon of 5.25% over a period of ten years, maturing in March 2029.
Santos MD and CEO Kevin Gallagher said that the offering, which was five times oversubscribed, was consistent with the company’s strategy of securing competitively priced long-term capital.
“This is an excellent result for Santos, showing strong support from the capital markets and demonstrating our balance sheet is up to support our growth strategy.
“The bond will replace the existing two-year bridge facility and in conjunction with the repayment of the balance of the uncovered ECA facility later in March, will mean that all significant near-term debt maturities have been addressed with more efficient long-term debt funding.”