New Enquest Retail Bond 9% Due 2027

[88V8]

Hmmm......

They have not raised sufficient new money to pay off holdouts of the existing notes due next year.

So, no scaling.
I presume they will roll over the PIK notes when they fall due. Can't imagine holders objecting as the PoO will probably be such that the coupon is still being paid on the PIKs.

One might feel safer rolling the PIKs 12 months at a time rather than holding the 9s to expiry.

V8

[Gan020]

Sizing Announcement and Announcement of Results of Exchange Offer


https://www.londonstockexchange.com/new ... t/15418612

Hmmm......

Not exactly an overwhelming endorsement. It will be interesting to see what Enquest do next. They have not raised sufficient new money to pay off holdouts of the existing notes due next year.

They are throwing off cash with oil at $100

£190m of existing notes. £133m of new notes after the existing ones converted or redeemed.

Gives them 18 months to find the balance of £57m which should be easy with the price of oil. Their committment to paying down debt has to come from either the retail bonds of the high yield debt so £57m from this seems about in the appropriate range they would be looking for, especially since they had call options in ENQ2 anyway.

However, I take your point. At a 9% coupon I'm surprised the conversion to ENQ2 wasn't higher, suggesting some market nervousness.

[hiriskpaul]

Sizing Announcement and Announcement of Results of Exchange Offer


https://www.londonstockexchange.com/new ... t/15418612

Hmmm......

Not exactly an overwhelming endorsement. It will be interesting to see what Enquest do next. They have not raised sufficient new money to pay off holdouts of the existing notes due next year.

They are throwing off cash with oil at $100

£190m of existing notes. £133m of new notes after the existing ones converted or redeemed.

Gives them 18 months to find the balance of £57m which should be easy with the price of oil. Their committment to paying down debt has to come from either the retail bonds of the high yield debt so £57m from this seems about in the appropriate range they would be looking for, especially since they had call options in ENQ2 anyway.

However, I take your point. At a 9% coupon I'm surprised the conversion to ENQ2 wasn't higher, suggesting some market nervousness.

I agree that the balance of £57m isn't a big problem. I am more concerned about the refinancing of $827m High Yield Notes due on the same date next year. Maybe holders will find a 9% coupon more attractive than holders of the retail bond were. If not, Enquest may have to offer a higher coupon and/or refinance in other ways such as a rights issue.

[airbus330]

Fella I know has had his full allocation of new shares from Primary Bid notified. Anyone else heard, nowt from HL yet.

[sackofspuds]

Fella I know has had his full allocation of new shares from Primary Bid notified. Anyone else heard, nowt from HL yet.

Got a notification from II:

Allocations have been met in full, meaning customers will receive 100% of the amount they applied for.

[Gwm24]

I am more concerned about the refinancing of $827m High Yield Notes due on the same date next year. Maybe holders will find a 9% coupon more attractive than holders of the retail bond were. If not, Enquest may have to offer a higher coupon and/or refinance in other ways such as a rights issue.

Enquest mention asset sales or other funding or finance options in their last accounts. Not too surprised by the lowish take up of the Retail Bonds. Retail bond holders tend to veer towards status quo in my experience. I expect there will be refinancing activity for the high yield bonds soon. Better to strike now in case oil goes back below $65 and PIK rears its ugly head again.

Feel reasonably comfortable about these at the moment but don't expect to hold them until 2027!

[hiriskpaul]

I am more concerned about the refinancing of $827m High Yield Notes due on the same date next year. Maybe holders will find a 9% coupon more attractive than holders of the retail bond were. If not, Enquest may have to offer a higher coupon and/or refinance in other ways such as a rights issue.

Enquest mention asset sales or other funding or finance options in their last accounts. Not too surprised by the lowish take up of the Retail Bonds. Retail bond holders tend to veer towards status quo in my experience. I expect there will be refinancing activity for the high yield bonds soon. Better to strike now in case oil goes back below $65 and PIK rears its ugly head again.

Feel reasonably comfortable about these at the moment but don't expect to hold them until 2027!

I am fairly confident they will attempt to refinance the High Yield Notes soon as well. If they do experience similar problems it should be easier to sell some assets at present, should it come to that.

[airbus330]

Fella I know has had his full allocation of new shares from Primary Bid notified. Anyone else heard, nowt from HL yet.

Got a notification from II:

Allocations have been met in full, meaning customers will receive 100% of the amount they applied for.

Thanks for the reply. HL caught up with the pack today.

[hiriskpaul]

Just tried to get a quote for these at HL and got this:

It is expected that EnQuest plc 9% 2027 will be admitted to Unconditional trading on the London Stock Exchange on 28 April 2022.

Hargreaves Lansdown expects to be able to trade this security. However, we are currently awaiting confirmation as to the stock’s settlement status. Once confirmed, trading will be enabled.

We have not been allocated bonds yet, HL still displaying a corporate action placeholder. Has anyone received their bonds?

[Surerera]

hiriskpaul, it's the same with iDealing, still showing a position in ENQ1.

[geoffp]

Still waiting for confirmation of my exchange of bonds with Interactive Investors so it looks that the delay may be with Enquest rather than individual dealers.

[airbus330]

My HL order appeared this morning along with an apology for the delay.

[hiriskpaul]

Still waiting for the exchange to be completed at HL, but I just got a quote to buy £1k nominal for 100.95, plus 6 days accrued.

[Surerera]

Still waiting for the exchange at iDealing although the outright purchase is showing.

[88V8]

Still showing the 7s at ii.

As hirisk said, it looks almost as if one can buy the 9s ENQ2 cheaper than the 7s. Where's my 115%??

V8

[hiriskpaul]

Still no sign at HL of my exchange fee, accrued interest or new notes, all of which should have appeared 2 days ago.

Has anyone else been credited with any of this?

[Wozzitworthit]

With HL also ... and also no sign of fee, interest credit or new notes

[Catocr]

With HL also ... and still no sign of fee, interest credit or new notes

[geoffp]

I have just queried the situation with Interactive Investor and will post here when I get a reply!

[Wozzitworthit]

The new notes now appear on all of our relevant accounts with HL , but as yet no sign of fee or interest credit