Debt structure

 

Debt instrument

Principal 

(as at 31 December 2021 unless otherwise stated)

MaturityAnnual Interest %Comments

Reserves Based Facility (USD)

Up to $750 million senior secured revolving borrowing base facility agreement

 

 

RBL Drawdown 
$415 million

LoC utilisation 
$53 million

Oct-23 

(may be extended to seven years after the date of signing the RBL if the high yeld bond is refinanced before 1 October 2023)

USD SOFR + Margin 

Margin is:
1)  4.25% - until the earlier of high yield bond refinancing closing date or 1 October 2022;
2) 4.50% - from 1 October 2022 if no high yield bond refinancing has occurred

In June 2021, EnQuest entered into an up to $750 million senior secured revolving borrowing base facility ('RBL').

  • USD denominated facility;
  • Drawings under the RBL in the form of cash facility to $600 million or letters of credit to $150 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;
  • Mandatory cash sweep to repay outstanding RBL loan amounts;
  • RBL requires 60% of net entitlement production volumes for the 12 months ahead, and 40% of the following 12 months net entitlement production, to be hedged.

 

High yield bond
(USD)


Retail bond
(GBP)

In April 2022, the Retail bond was partially refinanced leaving £111.3 million outstanding - see below for details

c.$825
million


£111.3 million

(as at 27 April 2022)

 

Oct-23 (see comments)7.00% payable semi-annually in arrears

In 2013, the Group issued a £155 million retail bond and in 2014, the Group issued a $650 million high yield bond.

In 2016, both the retail bond and the high yield bond were amended pursuant to a scheme of arrangement whereby all existing notes were exchanged for new notes.

  • Cash interest will only be payable if the ‘Cash Payment Condition’ is satisfied, with this being the average of Daily Brent Oil Prices being $65/bbl or greater over the  six month period preceding the ‘Cash Payment Determination Date’ 
  • The cash Payment Condition Determination Date is the date falling one month prior to the relevant interest payment date
  • If the ‘Cash Payment Condition’ is not satisfied, interest will not be paid in cash but instead be capitalised and satisfied through the issue of additional notes
  • Under the existing terms of the Retail Notes, the maturity date was automatically extended to 15 October 2023 (from 15 April 2022) as EnQuest's senior credit facility had not been repaid or refinanced in full by 15 October 2020. Similarly, under the existing terms of the High Yield Notes, the maturity date was automatically extended to 15 October 2023 (from 15 April 2022) as the senior credit facility had not been repaid or refinanced by 30 October 2020.
 
Retail Bond (GBP)

£133.3 million

(as at 27 April 2022)

Oct-279.00% 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.$10 millionDec-23GBP 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.