Kistos Holdings (AIM:KIST) priced a US$300 million four‑year senior secured bond at par with a 9.875% per annum coupon, the issuance was oversubscribed and aimed at financing recent M&A and balance-sheet needs.
The independent energy company, which targets value within its existing portfolio and through value‑accretive M&A, said the book attracted strong demand from international institutional investors across the Nordics, the UK and other geographies.
Settlement and release of US$280 million of the net proceeds are conditional on completion of the Block 3 & 4, Oman acquisition and the satisfaction or waiver of customary conditions precedent, including the release of funds from escrow.
An additional US$20 million tranche, representing the balance of the issuance, will be released from escrow only upon completion of the Block 9, Oman acquisition subject to the customary conditions precedent set out in the bond documentation.
Net proceeds will be used to redeem in full the Group's existing Norwegian bond indebtedness, with any remaining amounts available for general corporate purposes.
"The strong demand for the bond issue among new and continuing credit investors demonstrates the strength and attractiveness of Kistos' diversified energy platform, with a strong foothold in Europe and its entry into the Middle East & North Africa through Oman," said Andrew Austin, Executive Chairman.
