Table of Contents
Key Points
- Seplat Energy announced a $650 million senior notes offering due 2030 to refinance existing debt and improve its capital structure.
- The company’s tender offer allows investors to sell back 2026 notes before March 18, 2025, with settlement expected by March 21.
- Seplat reported a 137% revenue increase to $1.11 billion in 2024, driven by expansion and acquisitions, including an $800 million ExxonMobil deal.
Seplat Energy, the Nigerian energy company co-founded by Austin Avuru, has announced a $650 million senior notes offering due in 2030 as part of a broader plan to cut financing costs and improve its capital structure.
The dual-listed company, trading on both the London Stock Exchange and the Nigerian Exchange, disclosed the offering in a regulatory filing on Tuesday. The proceeds will be used to buy back its existing $650 million senior notes, which carry a 7.75 percent interest rate and are set to mature in April 2026.
As part of the refinancing process, Seplat has also launched a tender offer allowing investors to sell back their 2026 notes before the March 18, 2025, deadline. Settlement is expected by March 21, 2025, subject to financing conditions. “This will help us manage our financial liabilities more efficiently, strengthen our balance sheet, and maintain long-term stability,” the company said.
Debt restructuring to boost financial flexibility
Seplat confirmed that if the financing condition is met, any remaining 2026 notes will be redeemed under the terms of its 2021 bond agreement. “Once the tender offer is completed and the financing condition is satisfied, we plan to redeem any remaining 2026 notes under the indenture dated April 1, 2021,” the company added.
The company also noted that the new bonds are not registered under U.S. securities laws, meaning they can only be sold under specific exemptions in the United States, European Economic Area (EEA), and the United Kingdom. “This announcement does not constitute an offer to sell securities in the United States,” Seplat clarified, emphasizing compliance with regulatory requirements.
Investors who participate in the tender offer will receive priority in the allocation of new notes, though Seplat retains the final say on allotments. “We intend, but are not obligated, to prioritize investors who validly tender or confirm their intention to tender their holdings,” the company stated.
Expansion plans and financial performance
Seplat, co-founded by Austin Avuru and Ambrosie Orjiako, has strengthened its position in Nigeria’s energy sector through major acquisitions, including an $800 million deal for ExxonMobil’s Nigerian assets. The company plans to invest up to $320 million in onshore oil and gas expansion, reinforcing its role as a key player in Nigeria’s upstream sector.
For the financial year ending December 2024, Seplat reported a 137 percent jump in revenue to N1.652 trillion ($1.11 billion), up from N696.9 billion ($1.06 billion) in 2023. Operating profit surged to N647.9 billion ($437.9 million), a sharp increase from N163.7 billion ($249.4 million) year-on-year.
“The tender offer, along with the new senior notes issuance, is part of our strategy to optimize debt management and reduce financing costs,” Seplat said. The company’s latest refinancing move reflects its focus on strengthening its balance sheet, sustaining growth, and boosting investor confidence in Nigeria’s evolving oil and gas industry.
