ShaMaran Announces Successful Placement of New USD 300 Million Bond
Vancouver, BC, July 16, 2021 /CNW/ - ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX VENTURE: SNM) (NASDAQ First North: SNM) is pleased to announce that a new USD 300 million bond, with 4-year tenor has been priced at 12% fixed semi-annual coupon. The new bond is issued at 98.5% of nominal value which is applicable to both new money under the Initial Issue Amount of USD 111.5 million and the refinancing of existing debt under the Tap Issue. Settlement of the Initial Issue Amount is expected to be on July 30, 2021. The proceeds from the bond issue will be used to refinance USD 175 million of the currently outstanding USD 180 million bonds, to refinance USD 7.2 million of existing subordinated debt, finance the Sarsang acquisition announced July 12, 2021 and general corporate purposes. Cash proceeds from the new bond will be placed in an escrow account and will only be released upon satisfaction of the closing conditions to the Sarsang acquisition.
Furthermore, issuance of the new bond is conditional on approval by sixty-six 2/3% of bondholders through a written resolution in the existing bond (ISIN NO 0010826456). Voting deadline for the written resolution is July 27, 2021.
Pareto Securities AS acted as manager and bookrunner for the bond issue. Arkwright London acted as bond advisor to ShaMaran.
FORWARD LOOKING STATEMENTS
This news release contains statements and information about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management’s capacity to execute and implement its future plans. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking information. Forward-looking information typically contains statements with words such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "outlook", "budget" or the negative of those terms or similar words suggesting future outcomes. Forward-looking information in this press release include, among other things: the proposed use of proceeds of the private placement. The Company cautions readers regarding the reliance placed by them on forward‐looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.
Actual results may differ materially from those projected by management. Further, any forward-looking information is made only as of a certain date and the Company undertakes no obligation to update any forward-looking information or statements to reflect events or circumstances after the date on which such statement is made or reflect the occurrence of unanticipated events, except as may be required by applicable securities laws. New factors emerge from time to time, and it is not possible for management of the Company to predict all of these factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company may elect to use the proceeds of the private placement in a different manner than as described above if the Company determines it is in its best interests to do so.
OTHER
This information is information that ShaMaran is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact persons set out below, on July 16, 2021 at 12:00 p.m. Eastern Time.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Pareto Securities AB is the Company’s Certified Advisor on Nasdaq First North Growth Market (Stockholm), +46 8402 5000, [email protected].
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