Australian LNG player Santos will secure $1 billion via a debt offering in the US dollar bond market.
Santos announced on Thursday that it has conducted a debt offering and successfully priced a $1 billion senior unsecured fixed rate bond transaction in the US dollar Rule 144A/Reg S market.
The bonds will be issued by Santos Finance, a wholly owned subsidiary of Santos, while the bonds will be guaranteed by Santos.
Moreover, Santos intends to use the proceeds for general corporate purposes.
The bonds have been priced at a fixed coupon of 5.75 percent for a period of 10 years, maturing in November 2035.
Settlement of the bonds is expected to occur on November 13, and is subject to customary closing conditions.
“Strong” support
Santos managing director and CEO Kevin Gallagher said the transaction demonstrates “strong support for the company from debt capital markets.”
Also, it ensures Santos’ balance sheet and liquidity remain “strong”, and can support execution of the company’s strategy.
“This is an excellent result for Santos. Securing attractively-priced, long-term capital positions Santos to build and grow production in a disciplined way so that we can generate strong cash flows and returns for our shareholders from our high-quality, diversified portfolio,” Gallagher said.
Gallagher recently said that Santos remains on track to ship the first Darwin LNG cargo produced from the Barossa gas field in the fourth quarter of this year.
Santos reported sales revenue of $1.1 billion in the third quarter, contributing to cumulative revenue of $3.7 billion year-to-date.
Third-quarter revenue decreased 12 percent compared to the previous quarter, while the nine-month revenue dropped 7 percent year-on-year.