Paris, 12 May 2022
No. 12-22
Completion of debt refinancing process and increase of the proposed dividend to €0.14 per share
Debt refinanced on favourable terms
o Five-year bank loan for $255 million, including $67 million as a revolving credit facility
o Six-year shareholder loan with $182 million available
o Highly competitive interest rates for the sector (SOFR + 2.00%/2.25% for the bank loan and SOFR + 2.10% for the shareholder loan) thanks to the continued support of PIEP, M&P's majority shareholder
Robust debt repayment profile and increased financial flexibility
o Debt repayment compatible with a Brent price of $45/bbl over the period
o Active liquidity management thanks to the revolving portion of the bank loan
o End to cap on dividend distribution by M&P
Completion of the refinancing allows for the proposed dividend for fiscal year 2021 to be increased from €0.07 to €0.14 per share
o $30 million to be paid out to shareholders
o The approval of the dividend will be put to the vote of the General Shareholders' Meeting on 17 May, with a payment in July
The Maurel & Prom group ("M&P", "the Group") has secured a new bank loan as well as an extension and amendment of its shareholder loan in order to refinance the existing term loan facility which was entered into in December 2017 with a syndicate of lenders.
As a reminder, M&P's current gross debt before refinancing amounts to $489 million, including $406 million for the term loan, and $82 million (as well as $100 million undrawn) for the shareholder loan from PT Pertamina Internasional Eksplorasi dan Produksi ("PIEP"), M&P's majority shareholder. Note that M&P's cash position at the end of March 2022 was $187 million, giving net debt of $302 million.
The documentation for the new loans, with a total available amount of $437 million, was finalised on 12 May 2022, and M&P now has 60 days to draw the bank loan to repay the existing term loan. It should be highlighted that these loans do not include any cap on dividend distributions to be made by M&P.
Olivier de Langavant, Chief Executive Officer at M&P, stated: "In an environment where access to credit is becoming increasingly difficult and costly for companies in our sector, we have secured very favourable borrowing terms for the next six years. Our repayment schedule allows us to confidently continue working on our development and enables the full repayment of our debt even at oil prices well below current levels. Finally, the lifting of restrictions on dividends opens the door to a firm policy of returning value creation to shareholders, within the framework of a balanced capital allocation strategy."
Key terms of the refinanced debt facilities:
Bank loan Amortised tranche | Bank loan RCF tranche | Shareholder loan |
Available amount
$188mm
$67mm
$182mm
Interest rates
SOFR + 2.00%
SOFR + 2.25% (0.675% on undrawn portion)SOFR + 2.10%
Repayments First instalment1 Last instalment1
18 quarterly instalments
Q2 2023
At maturity -
22 quarterly instalments
Q2 2023
Q3 2027
Q3 2027
Q3 2028
Impact of the refinancing on debt repayment profile from May 20221:
Current facilities ($489mm) Term loanShareholder loan $350mm $303mm $300mm 28 $250mm $200mm $141mm $150mm 9 275 $100mm $45mm 131 $50mm 45 $0mm 2022 2023 2024 2025 2026 2027 2028 | New facilities ($437mm) Bank loan (amortised tranche)Bank loan (RCF tranche)Shareholder loan $350mm $300mm $250mm $200mm $150mm $100mm $50mm $0mm 2022 $128mm $72mm $70mm $70mm $70mm 33 25 47 33 38 33 38 33 38 67 $26mm 28 26 2023 2024 2025 2026 2027 2028 |
The banks participating in the bank loan are: Bank of Tokyo-Mitsubishi UFJ, Bank Mandiri, Crédit Agricole and Kasikornbank. Furthermore, M&P retains the right to upsize the bank loan, with new or existing lenders, under the same conditions, within eight months and up to a maximum amount of $400 million (i.e. a maximum increase of $145 million).
1 Assuming loans are drawn in full at the end of the authorised 60-day drawing period (July 2022)
Français | Anglais | ||
pieds cubes | pc | cf | cubic feet |
millions de pieds cubes par jour | Mpc/j | mmcfd | million cubic feet per day |
milliards de pieds cubes | Gpc | bcf | billion cubic feet |
baril | B | bbl | barrel |
barils d'huile par jour | b/j | bopd | barrels of oil per day |
millions de barils | Mb | mmbbls | million barrels |
barils équivalent pétrole | bep | boe | barrels of oil equivalent |
barils équivalent pétrole par jour | bep/j | boepd | barrels of oil equivalent per day |
millions de barils équivalent pétrole | Mbep | mmboe | million barrels of oil equivalent |
For more information, visitwww.maureletprom.fr/en/
Contacts
Maurel & Prom
Press, shareholder and investor relations Tel: +33 (0)1 53 83 16 45ir@maureletprom.fr
NewCap
Financial communications and investor relations/Media relations Louis-Victor Delouvrier/Nicolas Merigeau
Tel: +33 (0)1 44 71 98 53/+33 (0)1 44 71 94 98maureletprom@newcap.eu
This document may contain forward-looking statements regarding the financial position, results, business activities and industrial strategy of Maurel & Prom. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors, such as fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.
Maurel & Prom is listed for trading on Euronext Paris
CAC All-Tradable - CAC Small - CAC Mid & Small - Eligible PEA-PME and SRD
Isin FR0000051070/Bloomberg MAU.FP/Reuters MAUP.PA
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Établissements Maurel & Prom SA published this content on 12 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2022 05:38:06 UTC.