Rex International Holding, a technology-driven oil exploration and production company, has made significant strides in its funding strategy with its subsidiary, Lime Petroleum Holding AS (LPH). The company has successfully raised NOK 1.2 billion (approximately US$112.3 million) through the issuance of senior secured bonds, with a three-year tenor.
This funding move comes after market feedback prompted a shift in the bond denomination from USD to NOK. The proceeds from this bond issuance will be strategically allocated towards refinancing Lime Petroleum AS’s existing bonds, as well as supporting LPH’s exploration, development, and production activities in Norway and Africa. Additionally, the funds will help bolster general working capital.
The bond settlement is scheduled for 17 July 2024, with the bonds being issued at 100 per cent of the nominal amount. They will carry a coupon rate of 925 basis points plus the three month Norwegian Interbank Offered Rate (NIBOR). It is worth noting that the closing and drawdown of the bonds are contingent upon certain conditions and approvals.
ABG Sundal Collier has been appointed as the Sole Bookrunner and Manager for this bond issuance, further solidifying LPH's position in the financial markets. This successful capital raising effort highlights Rex International’s commitment to advancing its exploration and production capabilities in the oil and gas sector.