Dentons US LLP

09/27/2021 | Press release | Distributed by Public on 09/28/2021 04:13

Dentons advises on successful tender offer of bonds by Hurricane

September 27, 2021

United Kingdom-Dentons is pleased to have advised Hurricane Energy plc on the tender offer by Hurricane GLA Limited to the holders of Hurricane's US$230 million 7.50% Convertible Bonds due 2022.

Hurricane is an oil and gas fractured basement specialist with acreage concentrated on the Rona Ridge, in the West of Shetland region of the UK Continental Shelf. The Lancaster field (100% owned by Hurricane) is the UK's first producing basement field.

The final acceptance amount of the Offer was US$77,984,000 in aggregate principal amount of the Bonds and the purchase price was 78% of the principal amount of the Bonds. Following settlement of the Offer and the cancellation of the Bonds accepted for purchase, US$152,016,000 in aggregate principal amount of the Bonds remains outstanding. The successful buyback of more than 33% of the Bonds utilised approximately US$62 million of net free cash (inclusive of accrued interest). The effect of this will save Hurricane approximately US$22 million of future obligations to bondholders in capital and interest.

Antony Maris, Chief Executive Officer of Hurricane, said: "This is a positive development for the Company in managing its outstanding debt. We are grateful for the support that Dentons has provided us on this transaction."

Darren Acres, relationship partner in Dentons' Corporate practice in London, said: "We are very pleased to have been trusted by Hurricane in advising them on this transaction. We have had a longstanding relationship with the Company and we are pleased to see they have been able to complete a successful buyback of a significant amount of their Bonds."

Nick Hayday, partner in Dentons' Debt Capital Markets practice in London, said: "We are very pleased to have worked closely with Hurricane on their successful tender offer. This demonstrates the increasing capabilities of the Dentons team to advise on liability management exercises and complicated restructuring issues."

Nick Hayday led on the tender offer transaction along with senior associate, Victoria Wyer, with assistance from associate Niharika Khimjiand trainee Ed Varney. Stifel Nicolaus Europe Limited acted as Dealer Manager on this transaction and were represented by Simmons & Simmons LLP.

Dentons advised Hurricane on the primary issue of the Bonds in 2017 as well as on its Part 26A restructuring plan earlier this year.

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