Afren - Distressed
As expected, Afren have received a deferral of the US$50m amortisation of their EBOK RBL, they have exercised a 30 day grace period for the payment of the coupon on the 2016 bond, and Seplat have received a two-week extension from The Takeover Panel as they weigh making an offer.
Bonds are keenly priced to Street assessment of recovery value, but it's a cheap 1st Lien option on the Brent oil price over the next month - which has been supported by the falling US rig-count and not been hit by the on-going strikes at 10% of US refining capacity, and should cause further WTI/Brent spread widening if it is prolonged. The last nationwide work stoppage in 1980 lasted three months.
We await the/a Seplat offer, but with lifting costs + SG&A at US$35/bbl - someone will put debt and equity into the biz, and the existing bonds are value up to about 50c, targeting short-term catalysts and IRR's of 50%.
Repellat praesentium nostrum maxime voluptates quae consequatur fugiat. Praesentium molestiae molestias quisquam fugit fugiat quis. Ad esse aut fuga sapiente aut molestias. Aut quod possimus esse laboriosam veritatis quasi.
Et deserunt nihil laboriosam aut. Excepturi voluptates dolor rerum recusandae. Doloribus nisi quis natus quia maxime quis corporis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...