March 11, 2025 15:57 GMT
EM CEEMEA CREDIT: SEPLLN: mandate USD650mn 5NC2
EM CEEMEA CREDIT
Seplat Energy (SEPLLN; Caa1pos/B/B-pos)
“*SEPLAT ENERGY PLANS OFFERING OF SENIOR NOTES"- BBG
FV @ 8.5% or z+475bp
- Nigeria’s upstream oil&gas Seplat Energy has mandated banks for a bond offering, indicating a USD 650mn 5NC2 structure. The Co. is also conditionally tendering existing SEPLLN 7.75 Apr26 notes (USD650mn outstanding), with a March 18 deadline. Following the announcement, Moody’s affirmed ratings and outlook. See our earlier note for reference:
https://mni.marketnews.com/4bLUxX1 - We place FV estimate at z+475bp (or 8.5% area), +40bp pick up vs AZURGY 30s and +70bp vs IVN 30s, but 25bp inside NGERIA sovereign (see chart below). For our FV considerations we have looked for comparables among recently issued deals and beyond (see table below). In particular, we selected slightly higher rated Azule Energy (AZURGY; B2/-/B+) and miner Ivanhoe (IVN; -/B/B), as well as similarly rated but sovereign risk NGERIA (Caa1pos/B-/B-pos) curve. We also looked at Kosmos Energy (KOS; B3/B/B+).
- AZURGY 8.125 Jan30 charts @ z+435bp or 8.07% yield. The bond has a 5NC2 structure priced at 8.125% from IPT at mid-high 8% area back in Jan ’25. Low-levered Azule Energy is an Angola based oil&gas JV with BP and ENI backing, which we view as supportive for the credit.
- IVN 30s charts at z+405bp or 7.77% yield. The bond has a similar 5NC2 structure, it was issued back in January at 7.875% yield from IPTs at low-mid 8% area. Low-levered Ivanhoe is a Canada-HQ miner, active in copper mining in DRC complemented by PGM-focus in South Africa.
- KOS 8.75 Oct31 charts at z+655bp or 10.30% yield. The bond has a 7NC3 structure having priced at 8.75% back in Sep ’24. US-HQ, geographically diversified oil&gas business, Kosmos Energy has an operational presence in Ghana among various other jurisdictions in West Africa, and further afield in the Gulf of America, as referred to by the Co.
- Seplat Energy recently posted FY24 results, as per our earlier note:
https://mni.marketnews.com/41ULuQa

Seplat | Azule | Ivanhoe | Kosmos | |
Moodys | Caa1/Pos | B2 | NR | B3 |
S&P | B | NR | B | B |
Fitch | B-/Pos | B+ | B | B+ |
Net interest cov | 6.8x | 7x | 2.07x | 10x |
Net debt to EBITDA | 0.7x | 0.5x | 1.36x | 2.75x |
source: MNI & Co websites |
Keep reading...Show less
317 words