Debt

Principal 

(as at 30 June 2021)

Credit Facility (USD)¹

Commitments split into a term facility of $1.125 billion and a revolving facility of $75 million (together the 'credit facility')

USD LIBOR +4.75% 

In 2016, EnQuest completed a loan restructuring and entered into an amended and restated credit agreement.

• Borrowings subject to mandatory repayment out of excess cash flow (excluding amounts required for approved capital expenditure), assessed on a six-monthly basis;
• Borrowings up to $890.7 million subject to interest at USD LIBOR plus a margin of 4.75%, paid in cash;
• Borrowings in excess of $890.7 million subject to interest at USD LIBOR plus a margin of 5.25%, paid in cash, with a further 3.75% interest accrued and added to the Payment In Kind (‘PIK’) amount at maturity of each loan’s maturity period;
• PIK amount repayable at maturity and subject to 9.0% interest, which is capitalised and added to the PIK amount on each of 30 June and 31 December; and
• $12 million waiver fee payable to lenders on 31 March 2018

High yield bond
(USD)

Retail bond
(GBP)

c.$825 million
 

c.£190 million

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.

• The interest will only be payable in cash if the ‘Cash Payment Condition’ is satisfied, being the average of the Daily Brent Oil Prices during the period of six calendar months immediately preceding the ‘Cash Payment Determination Date’ is equal to or above $65/bbl
• The cash Payment Condition Determination Date is the date falling one calendar 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.

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