Debt - EnQuest

Debt structure

Debt instrument	Principal (as at 31 October 2022 unless otherwise stated)	Maturity	Annual Interest %	Comments
Reserves Based Facility (USD) Up to $500 million senior secured revolving borrowing base facility agreement including $75 million letter of credit facility	RBL Drawdown $400.0 million LoC utilisation $52.6 million	Apr-27	USD SOFR + Margin Margin is: 1) 4.00% - until and including 10 June 2025; 2) 4.50% - from 11 June 2025 up to and including maturity date	In October 2022, EnQuest entered into an up to $500 million senior secured revolving borrowing base facility ('RBL'). USD denominated facility; Drawings under the RBL in the form of cash facility to $500.0 million or letters of credit to $75.0 million; Incorporates uncommitted accordion facility of $300.0 million Covenants tested at the half and full year include: (a) ratio of consolidated net financial indebtedness to EBITDA < 3.5x; and (b) liquidity test requiring the Group to have sufficient funds available to meet all of its liabilities over the next 24 months; Minimum cash balance of $25 million to be maintained across all periods; RBL requires 45% of net entitlement production volumes for the 12 months ahead, and up to 35% of the following 12 months net entitlement production, to be hedged.
High yield bond (USD)	c.$305 million	Nov-27	11.625% payable semi-annually in arrears	In October 2022, the Group issued a $305 million high yield bond. Subordinated debt sitting behind obligations under the RBL facility Optional redemption for: a) Prior to 1 November 2024 up to 40% of the outstanding notes at 111.625% of the principal amount with all or a portion of Equity Offerings b) Prior to 1 November 2024 up to 10% of issued notes may be redeemed annually at 103% of the original principal amount c) On or after 1 November 2024 all or part of the outstanding notes at perscripted redemption prices
Retail Bond (GBP)	£111.3 million	Oct-23	7.00% payable semi-annually in arrears	Following the partial refinancing of the 2023 7% GBP retail bond through the exchange and cash offer in April 2022, the outstanding stub on the 2023 bond is £111.3 million. It is expected that this stub will be settled in cash at maturity.
Retail Bond (GBP)	£133.3 million	Oct-27	9.00% payable semi-annually in arrears	The 9.00% 2027 GBP Retail bond was issued through an exchange and cash offer. The offer completed on 20 April 2022, and settled on 27 April 2022, with a principal of £133.3 million generated via £54.0 million of new cash inflows, and £79.3 million of existing 7.00% bonds being exchanged for the new bond.
Sullom Voe Terminal ‘SVT’ working capital facility (GBP)	c.$8 million	Dec-23	GBP SONIA +1.00%	In 2017, EnQuest NNS Limited entered into a $42.0 million revolving loan facility with a joint operator partner to fund the short-term working capital cash requirements on the acquisition of SVT and other interests. The facility is able to be drawn down against, in instalments and is repayable three years from the initial availability of the facility BP has separately provided a guarantee of £42 million in relation to the SVT WCF, such guarantee given directly to BNP Paribas BP has agreed to continue to provide its guarantee of such a working capital facility for EnQuest NNS Limited until the earlier to occur of: 1. the date on which production from Magnus permanently ceases; or 2. if the operating agreements for both SVT and the NPS are amended to allow for cash calling, the effective date of such amendment

DISCLAIMER:

This information has been prepared by the Company in order to provide general, high-level summary information in respect of the Company’s financing arrangements to investors. Whilst it has been prepared on the basis of good faith, no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information in this presentation and no responsibility or liability is or will be accepted by EnQuest PLC or any of its respective subsidiaries, affiliates and associated companies (or by any of their respective officers, employees or agents) in relation to it. None of the Company or any of its subsidiary undertakings or any of such person's respective directors, officers, employees, agents, affiliates or advisers, undertakes any obligation to amend, correct or update this information or to provide the recipient with access to any additional information that may arise in connection with it.