Australia’s Santos to secure $850 million via bond offering

Australian LNG player Santos will secure $850 million via a debt offering in the US dollar bond market.

Santos said in a statement on Tuesday it has conducted a debt offering and successfully priced a $850 million senior unsecured fixed rate bond transaction in the US dollar 144A/RegS market.

The bonds will be issued by Santos Finance, a wholly owned unit of Santo, while the company plans to use the proceeds for general corporate purposes.

Also, Santos said the bonds have been priced at a fixed coupon of 6.875 percent for a period of 10 years, maturing in September 2033.

Managing director and CEO, Kevin Gallagher, said this transaction is an “excellent result” for Santos.

“This demonstrates continuing strong support from the capital markets and ensures our balance sheet is well positioned to deliver on our strategy,” Gallagher said.

Settlement of the bonds is expected to occur on September 19, New York time, and remains subject to customary closing conditions, Santos said.

Santos reported a 37 percent drop in its first-half profit due to lower oil and gas prices.

Underlying profit dropped to $801 million in the January-June period of this year from $1.27 billion in the same period in 2022.

Santos reported record profit in 2022 due to high LNG prices and increased PNG LNG position after the merger with Oil Search.

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