Hurricane Energy surges as it confirms partial bond buy back

Hurricane says $152m of bonds will remain at face value

The Hurricane Energy share price jumped up by 8% in early morning trading on Friday as the firm confirmed it will buy back $78m of bonds at a discount to par.

The AIM-listed company will pay 78p of each pound to buy back convertible bonds, as part of an effort that will take place in 2022.

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$152m of bonds will remain at face value after the company’s tender is settled.

After surging, the Hurricane Energy share price has rebalanced and is now up by only 1.81%.

“I am pleased that the company has been able to buy back more than 33% of the outstanding bonds,” Antony Maris, Chief Executive Officer said.

“This will reduce the par value of bonds held by third parties to US$152mln, utilising US$62mln of net free cash (inclusive of accrued interest).

“The effect of this will save the company approximately US$22mln of future obligations to bondholders in capital and interest. This is a positive development for the company in managing its outstanding debt.”

Hurricane was established to discover, appraise and develop hydrocarbon resources associated with naturally fractured basement reservoirs. The company’s acreage is concentrated on the Rona Ridge, in the West of Shetland region of the UK Continental Shelf.

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