Seplat Energy to redeem $3.2m notes

Seplat Energy Plc has announced plans to redeem its outstanding notes worth $3.2m on April 1, 2025, in line with its indenture agreement.

In a notice issued by the company on Monday, the Chief Financial Officer, Eleanor Adaralegbe, stated that the redemption covers the entire outstanding principal amount of the notes issued under the indenture dated April 1, 2021.

According to the notice, noteholders must hold their notes by March 31, 2025, to be eligible for the redemption payment, which includes the full principal amount and accrued interest. The redemption price has been set at 100 per cent of the principal value, with additional accrued and unpaid interest from October 1, 2024, up to but not including the redemption date.

Seplat Energy disclosed that the accrued interest for the period amounts to $3,198,347.50, equivalent to $1,038.75 per $1,000 denomination of the notes.

“The redemption date for the notes will be April 1, 2025, while the record date for noteholders to be entitled to the redemption price is March 31, 2025, being the business day immediately prior to the redemption date,” Seplat Energy stated.

It continued, “The redemption price is 100 per cent of the principal amount of the notes, plus accrued and unpaid interest from October 1, 2024, to, but not including, the redemption date, as well as additional amounts, if any. Assuming a redemption date of April 1, 2025, the issuer will have paid the accrued and unpaid interest for the period, which amounts to $3,198,347.5, equivalent to $1,038.75 per $1,000 denomination.”

The company advised noteholders to surrender their notes to Citibank N.A., London Branch, which serves as the paying agent, to receive their redemption payments.

Seplat Energy assured investors that interest on the notes will cease to accrue after the redemption date unless the company defaults on payment or the paying agent is unable to process the transaction under the indenture terms.

The PUNCH reported that Seplat Energy Plc has announced the successful completion of its tender offer for cash repurchase of its outstanding 7.750 per cent senior notes due 2026.