Rex International subsidiary’s bond issue fully subscribed; used to refinance existing bonds, fund acquisition

REX International on Wednesday (Jun 29) announced that the senior secured bond, worth 950 million Norwegian krones (S$134.2 million), of its 91.65 per cent-owned subsidiary Lime Petroleum has been fully subscribed.

The 3-year senior secured bond has a maturity date of Jul 7, 2025. It will be used to refinance an existing senior secured bond worth 500 million Norwegian krones issued in 2021, which will mature in January 2024, as well as to fund further acquisitions on the petroleum and gas-rich Norwegian Continental Shelf.

The bond issue will also go towards general working capital purposes, the group said in an exchange filing on Wednesday.

The group expects the bond to be listed on the Oslo Børs within 6 months, with a coupon rate of 3 months Norwegian Interbank Offered Rate plus 9.25 per cent. The issue date of the bonds is expected to be Jul 5, 2022. The bonds will be issued at 97 per cent of the nominal amount, it added.

Financial adviser ABG Sundal Collier has been appointed as the manager of the bond issue.

Lime Petroleum’s chief executive Lars Hubert said: “The completion of the bond issue allows us to forge ahead with our second acquisition of producing assets on the Norwegian Continental Shelf. We are excited to build on our reserves base and operating capabilities as we drive to unlock further value in our growing portfolio.”

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Shares of Rex International ended Tuesday up 3.6 per cent or S$0.01 at S$0.285.