Seplat Energy Plc has revealed plans to redeem the entire outstanding principal amount of its 7¾ percent Senior Notes due 2026, with the redemption scheduled for April 1, 2025. This move marks an early repayment of a portion of the $650 million in aggregate principal originally issued in April 2021, signaling a strategic shift in the company’s debt management approach.
According to the announcement, Seplat will redeem the notes at a price equal to 100% of the principal amount plus accrued and unpaid interest from October 1, 2024, to (but excluding) the redemption date of April 1, 2025. The total accrued interest is specified as $3,198,347.50, translating to approximately $38.75 per $1,000 of principal, consistent with the notes’ 7.75% annual coupon paid semi-annually.
Interestingly, the accrued interest figure suggests that the outstanding principal is far less than the original $650 million. Dividing the total interest by the per-note interest amount ($3,198,347.50 ÷ $38.75 per $1,000) indicates an outstanding principal of roughly $82.5 million.
This implies that Seplat has significantly reduced its exposure to these notes over the past four years, likely through repurchases or prior redemptions.
Noteholders recorded as of March 31, 2025, will be eligible for the redemption payment, which totals approximately $85.7 million when combining the principal and interest.
To collect this amount, investors must surrender their notes to Citibank N.A., London Branch, the designated paying agent. Post-redemption, interest will cease to accrue, provided the payment proceeds without issue.
For investors holding these notes, the early redemption offers an immediate outcome: a full return of principal plus six months of interest. With a total payout of $1,038.75 per $1,000 denomination, the process appears routine, though noteholders must ensure compliance with the surrender process to secure their funds.
