Nostrum Oil & Gas Aims to Complete Debt Restructuring by Mid-2022 — Update
By Jaime Llinares Taboada
Nostrum Oil & Gas PLC said on Friday it was focused on completing its bond restructuring by the middle of the year.
The oil and gas company said 77% of its noteholders had signed or adhered to its outstanding $1.1 billion debt restructuring agreement. The company is now focused on meeting all the required conditions, he said.
Last month, Nostrum, its largest shareholder and an ad hoc committee of noteholders agreed to 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 of senior unsecured notes with a cash coupon of 1.0%. % and interest in kind of 13%, both maturing in June 2026.
The remainder of the outstanding notes, which had principal totals of $725 million and $400 million, respectively, must be converted to equity. The final participation of Nostrum to be received by bondholders will depend on the results of an extraordinary general meeting of shareholders.
The agreement also included provisions regarding corporate governance, the use of cash flow and the transfer of the company’s listing to the LSE’s standard listing segment.
“This agreement removes significant hurdles as we seek to negotiate long-term contracts to fill unused capacity at our world-class processing facilities and thereby secure the medium to long-term future of the group,” the director said. General Arfan Khan.
Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT